Dubai: ALEC Holdings PJSC, a leading engineering and construction group, announced the successful completion of its IPO book building and subscription process, setting the final offer price at AED1.40 per share, the top end of its announced range. A total of 1 billion ordinary shares, representing 20% of ALEC’s share capital, were offered by the Investment Corporation of Dubai, the primary investment arm of the Dubai government.
According to Emirates News Agency, the IPO raised AED1.4 billion (US$381 million), giving ALEC a market capitalization of AED7 billion (US$1.91 billion) upon listing on the Dubai Financial Market (DFM). This IPO is notable as the largest in the UAE construction sector in over 15 years and the largest in terms of valuation and size in the country’s history.
All shares offered are existing shares held by the Investment Corporation of Dubai, meaning ALEC will not receive any proceeds from this offering. Post-IPO, the corporation will retain an 80% stake in ALEC. The company’s dividend policy, detailed in its UAE Prospectus and International Offering Memorandum, anticipates a cash dividend of AED200 million in April 2026 and AED500 million for the 2026 financial year, with payments scheduled for October 2026 and April 2027.
The IPO saw significant interest, with a gross demand of approximately AED30 billion (US$8.1 billion), oversubscribing by more than 21 times across all tranches, including notable participation from non-UAE investors. Investors in the Individual Subscribers Offering and Eligible ALEC and ICD Employees Offering will be notified of share allocations via SMS on 7 October 2025, with refunds starting on 8 October 2025.
Barry Lewis, ALEC’s CEO, expressed pride in the strong demand and investor interest, seeing it as a vote of confidence in ALEC’s value proposition and operational model. The company’s listing on the DFM is expected on 15 October 2025, under the trading symbol ‘ALEC,’ pending market conditions and regulatory approvals.
The IPO is subject to a 180-day lock-up period for remaining shares held by the Selling Shareholder, as per an underwriting agreement. Proceeds from up to 100 million Offer Shares will be allocated to xCube LLC for price stabilization on the DFM, adhering to legal and regulatory guidelines.
Emirates NBD Bank PJSC is the Lead Receiving Bank, with several other banks appointed as Receiving Banks. The IPO has been confirmed Shariah-compliant by the Internal Shariah Supervision Committee of Emirates NBD. Emirates NBD Capital PSC, J.P. Morgan Securities PLC, Abu Dhabi Commercial Bank PJSC, and EFG-Hermes UAE Limited are appointed as joint coordinators and bookrunners. Moelis and Company UK LLP DIFC Branch serves as the independent financial adviser for the IPO.
