ALEC Holdings has announced the price range for its initial public offering (IPO) and the start of the subscription period for its listing on the Dubai Financial Market (DFM).
The IPO price range has been set between AED1.35 and AED1.40 ($0.37–$0.38) per share, implying a market capitalisation at listing of between AED6.75 billion ($1.84bn) and AED7 billion ($1.91bn).
A total of 1,000,000,000 ordinary shares will be offered, representing 20 per cent of ALEC’s share capital. This places the total offering size between AED1.35 billion ($367m) and AED1.40 billion ($381m).
ALEC Holdings IPO in Dubai
All shares being offered are existing shares. The Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, is selling 20 per cent of its ownership in the company.
ALEC itself will not receive proceeds from the offering. Following completion—unless the offer size is increased—the selling shareholder will retain an 80 per cent stake.
ICD reserves the right to amend the offering size before the end of the subscription period at its sole discretion, subject to UAE law and Securities and Commodities Authority approval.
According to its dividend policy outlined in the UAE prospectus and the international offering memorandum, ALEC expects to distribute a cash dividend of AED200m ($54m) in April 2026, and AED500m ($136m) for the financial year ending December 31, 2026.
The latter will be paid in two instalments, in October 2026 and April 2027.
Based on the AED500 million dividend, the implied yield would be around 7.1 per cent at the upper end of the offer price and approximately 7.4 per cent at the lower end.
Thereafter, ALEC plans to adopt a semi-annual dividend policy, paying in April and October each year, with a payout ratio of no less than 50 per cent of net profits, subject to board approval and available reserves.
As part of the allocation process, 10 per cent of the total offer shares (deducted from the second tranche) will go equally to the Emirates Investment Authority and the Pensions and Social Security Fund for Local Military Personnel in Dubai.
If either entity does not exercise its preferential rights, shares will be made available to other professional investors.
The subscription period opens today and runs until 30 September 2025 for all investor tranches. The final offer price will be determined through a bookbuilding process and is expected to be announced on October 1, 2025.
Subject to market conditions and approvals, trading on the DFM is expected to begin on October 15, 2025.
In connection with the IPO, the selling shareholder has appointed xCube LLC as price stabilisation manager.
In line with regulations, it may conduct price stabilisation transactions on up to 100,000,000 shares.
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