ALEC IPO raises Dh1.4 billion, saw record non-UAE investor interest

Dubai: Dubai’s ALEC Holdings PJSC has priced its initial public offering (IPO) at the top of the announced range, raising Dh1.4 billion ($381 million) after demand surged to more than 21 times the shares on offer.

The engineering and construction group set its final offer price at Dh1.40 per share, valuing the company at Dh7 billion ($1.91 billion) upon listing on the Dubai Financial Market (DFM). The stock is scheduled to begin trading on or around October 15, 2025 under the ticker 'ALEC'.

The offering of one billion ordinary shares, representing 20% of ALEC’s share capital, drew Dh30 billion ($8.1 billion) in total orders.

"The offering attracted considerable interest from a broad range of high-quality investors. The IPO recorded one of the highest levels of non-UAE investor participation among recent UAE government-related listings on the DFM," the company said in a statement.

The sale consisted entirely of shares owned by the Investment Corporation of Dubai (ICD), which will retain an 80% stake following the listing.

This marks the UAE’s largest construction IPO by both size and valuation, and the first in the sector in more than 15 years.

Barry Lewis, CEO of ALEC Holdings, said the strong demand “signals broader investor conviction in the region’s construction sector, underpinned by ambitious national agendas and a strong pipeline of transformational projects.”

ALEC has outlined a dividend plan starting in 2026. It expects to distribute Dh200 million in April 2026, followed by Dh500 million for the financial year 2026, paid in two instalments (October 2026 and April 2027). Based on the IPO price, this equates to a dividend yield of 7.1%.

The company said it intends to pay semi-annual dividends thereafter, with a minimum payout of 50% of net profit, subject to board approval and available reserves.