ALEC Holdings PJSC has raised AED1.4 billion ($381 million) after pricing its initial public offering at AED1.40 per share, marking the UAE’s largest ever construction sector listing and the first in over 15 years.
The offering of one billion shares, representing 20 percent of ALEC’s share capital, was sold by the Investment Corporation of Dubai, which will retain an 80 percent stake. The final pricing valued the company at AED7 billion ($1.91 billion) upon listing on the Dubai Financial Market (DFM).
Investor demand was strong, with the IPO attracting AED30 billion ($8.1 billion) in orders and oversubscribed more than 21 times across all tranches. It also saw one of the highest levels of non-UAE investor participation in recent government-related listings.
CEO Barry Lewis said the response reflected confidence in both ALEC’s operating model and the wider construction sector, supported by the region’s ambitious development agenda.
While ALEC will not receive proceeds from the offering, it has committed to a dividend policy beginning with AED200 million in April 2026, followed by AED500 million for the 2026 financial year, translating to a 7.1 percent yield at listing. Thereafter, semi-annual payouts are expected at a minimum of 50 percent of net profit, subject to board approval.
Shares are expected to begin trading on 15 October 2025 under the symbol “ALEC,” pending regulatory approvals. The offering has been confirmed as Shariah-compliant, with Emirates NBD Capital and J.P. Morgan serving as joint global coordinators alongside other leading regional and international banks.
News Source: Emirates News Agency
