Dubai-based engineering and construction giant ALEC Holdings PJSC has officially launched its initial public offering on the Dubai Financial Market, setting a share price range between AED 1.35 and AED 1.40.
The offering of one billion shares, representing 20% of the company’s capital, values ALEC at between AED 6.75 billion and AED 7 billion.
The shares on offer are existing shares being sold by the Investment Corporation of Dubai (ICD), which will retain an 80% stake post-IPO. ALEC itself will not receive proceeds from the sale. The company has outlined a dividend policy anticipating AED 200 million in April 2026 and AED 500 million for the full 2026 financial year, implying a dividend yield of 7.1% to 7.4% based on the current price range.
The IPO is divided into three tranches: 5% for retail investors, 94% for qualified institutional investors outside the U.S., and 1% for eligible ALEC and ICD employees. Additionally, 10% of the professional tranche is reserved for the Emirates Investment Authority and the Pensions Social Security Fund for local military personnel, with any unclaimed shares returning to other professional investors.
Subscriptions opened today and will run until 30 September 2025, with the final offer price expected on 1 October. Completion of the offering and listing on the DFM is scheduled for 15 October, subject to regulatory approvals.
Joint bookrunners for the IPO include Emirates NBD Capital, J.P. Morgan, ADCB, and EFG-Hermes. Moelis & Company acts as independent financial adviser. Price stabilisation support will be provided by xCube LLC, and the offering has received Shariah compliance confirmation from Emirates NBD’s Internal Shariah Supervision Committee.
News Source: Dubai Media Office
