UAE's ALEC sets IPO price range as Dubai pushes ahead with landmark listing

Dubai: ALEC Holdings, among the UAE’s top engineering and construction firms, has set price range for its upcoming initial public offering (IPO) at Dh1.35–1.40 per share. The offering, announced last week, involves a 20% stake in the state-owned contractor.

The offering comprises 1 billion shares — equal to 20% of ALEC’s capital — with the final offer price to be confirmed on October 1. Subscription opens on September 23 and will close on September 30, with the company expected to make its debut on the Dubai Financial Market (DFM) on October 15.

The Investment Corporation of Dubai (ICD), ALEC’s parent, will retain an 80% holding post-IPO, subject to a 180-day lock-up period. Of the total shares on offer, 94% are earmarked for institutional and professional investors, 5% for retail buyers, and 1% for ALEC employees.

Two government funds — the Emirates Investment Authority and the Pensions and Social Security Fund of Local Military Personnel — have priority rights to 5% each of the offer.

The move comes just a week after initial plans to publicly list ALEC, positioning the listing as a diversification play for the DFM and a chance for investors to gain exposure to one of the region’s leading contractors.

Advisers on the deal include Emirates NBD Capital, ADCB, and EFG Hermes as joint lead managers. The IPO is expected to be closely watched, particularly given the strong aftermarket performances of recent Dubai listings such as Salik and Spinneys.