Dubai's New IPO: Sovereign Wealth Fund ICD To Sell 20% Stake In Alec Holdings

Alec Holdings, a diversified engineering and construction group , on Monday said it would list 20 per cent of its share capital on the Dubai Financial Market through an Initial Public Offering, with the Investment Corporation of Dubai (ICD) selling its stake.

Dubai's sovereign wealth fund ICD is offloading one billion ordinary shares, and the company will list on the Dubai Financial Market (DFM) on or around October 15.

ICD will retain 80 per cent of Alec's remaining stake.

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The offering subscription period is expected to run from September 23 to September 30, 2025.

In the first tranche, shares will be made available to individual subscribers; professional investors in the second tranche; and Alec and ICD-eligible employees in the third tranche.

The first tranche is allocated 5 per cent of the offer shares, amounting to 50 million. Each subscriber in the first tranche will be guaranteed a minimum allocation of 2,000 shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus.

The second tranche is allocated 94 per cent of the offer shares, amounting to 940 million shares.

The third tranche is allocated one per cent of the shares offered, amounting to 10 million shares. Each subscriber will be guaranteed a minimum allocation of 10,000 shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus. If all of the offer shares in the third tranche are not fully subscribed for, the unsubscribed offer shares will be available to the first tranche.

Around 10 per cent of all offer shares deducted from the total size of the second tranche are reserved for Emirates Investment Authority and the Pensions Social Security Fund of Local Military Personnel, with five per cent each. If they do not exercise their preferential rights to apply for offer shares, then those offer Shares will be available to other professional investors.

“Over the past two and a half decades, we have built a strong reputation as a trusted regional leader, delivering some of the most complex and iconic projects in the UAE and the GCC. We enter the public markets from a position of strength, supported by a buoyant regional construction sector underpinned by ambitious national agendas in our home market and in Saudi Arabia, and a favourable economic environment,” said Hussain Nasser Lootah, chairman of Alec Holdings.

Barry Lewis, CEO of Alec Holdings, said,“We have executed and are currently working on some of the most complex and iconic projects across the UAE and in the Kingdom. Blue-chip clients choose Alec for our specialised solutions, integrated offerings, disciplined approach, and strong execution capabilities – setting us apart from other contractors.”

Looking ahead, he said the strategy is to expand our UAE leadership through Alec's partnerships and integrated capabilities, and target high-profile Saudi giga-projects that match our expertise.

“We're equally bullish on data centres. With the first phase of Stargate UAE secured, we're set to deliver hyperscale, AI-optimised campuses across the region.”

Dividends

Alec aims to distribute a cash dividend of Dh200 million, payable in April 2026, and a cash dividend of Dh500 million for the financial year ending December 31, 2026, payable in October 2026 and April 2027.

Thereafter, it expects to distribute cash dividends on a semi-annual basis (in April and October of each year), with a minimum payout ratio of 50 per cent of the net profit .

It recorded Dh5.362 billion in revenues in the first half of 2025, compared to Dh8.1 billion in the whole of 2024.

The construction firm hopes that it will benefit from the significant expansion of construction and infrastructure activity in both the UAE and Saudi Arabia, especially in segments where Alec has strong expertise, including hospitality, airports, and data centres.

It maintains a strong pipeline of large-scale projects, with a backlog of Dh35.4 billion as at June 30, 2025, with 79 per cent of the current backlog secured in the last two years.

According to the industry consultant Meed, total project spend in the UAE is expected to increase 76 per cent to Dh304 billion by 2033, compared to Dh173 billion in 2024. In Saudi Arabia, total project spend is forecast to more than double to Dh410 billion by 2033 compared to Dh193 billion in 2024.

Emirates NBD Capital and JP Morgan Securities have been appointed as joint global coordinators and joint bookrunners, while Abu Dhabi Commercial Bank and EFG-Hermes UAE Limited have been appointed as joint bookrunners.

Emirates NBD Bank has been appointed as the lead receiving Bank. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, and Wio Bank have also been appointed as receiving banks.

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