ALEC Holdings has successfully raised AED1.4bn ($381m) in its initial public offering on the Dubai Financial Market, following strong investor demand that resulted in oversubscription of more than 21 times across all tranches.
The IPO saw the sale of one billion ordinary shares, equivalent to 20 per cent of ALEC’s share capital, by the Investment Corporation of Dubai (ICD), the Government of Dubai’s principal investment arm.
Based on the final offer price of AED1.40 per share, ALEC’s implied market capitalisation stands at AED7bn ($1.91bn) upon listing.
ALEC Holdings IPO in Dubai
This marks a historic milestone as the UAE’s largest-ever construction IPO by valuation and size, and the first offering in the sector in more than 15 years.
Under its dividend policy, the firm expects to distribute AED200m ($54.4m) in April 2026 and AED500m ($136m) for financial year 2026, payable in October 2026 and April 2027.
Based on the final offer price, this equates to a 7.1 per cent dividend yield. Thereafter, the company plans semi-annual payouts in April and October, with a minimum 50 per cent of net profit distributed, subject to board approval and reserves.
The offering attracted total gross demand of around AED30bn ($8.1bn), one of the highest levels of non-UAE investor participation among recent government-related DFM listings.
Investors in the individual and employee tranches will receive allocation notifications by October 7, with refunds to begin on October 8.
Barry Lewis, CEO of ALEC Holdings, said: “We are proud that ALEC’s IPO drew strong demand and significant interest from a diverse and high-quality investor base. This is a clear vote of confidence in ALEC’s distinct value proposition and disciplined operating model.
“The strong response also signals broader investor conviction in the region’s construction sector, underpinned by ambitious national agendas and a strong pipeline of transformational projects.
“We are deeply thankful to our new shareholders for placing their trust in ALEC, and we look forward to the journey ahead as we continue to scale, deliver, and grow value together.”
Admission to trading on the DFM is expected on October 15, subject to regulatory approvals.
ICD will retain an 80 per cent stake following the IPO. Both ICD and ALEC will be subject to a 180-day lock-up from the date of admission. In addition, up to 100 million offer shares have been allocated to xCube LLC as price stabilisation manager.
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