Dubai: Alec Holdings Announces Price Range For IPO, Plans To Raise Up To Dh1.4 Billion

Alec Holdings on Tuesday said it has set a price range between Dh1.35 and Dh1.40 per share for its initial public offering (IPO).

This implies Alec's market capitalisation between Dh6.75 billion and Dh7 billion at listing on the Dubai Financial Market (DFM).

A total of one billion shares - equivalent to 20 per cent of Alec's share capital - are to be offered, resulting in an offering size between Dh1.35 billion and Dh1.40 billion.

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Dubai's sovereign wealth fund Investment Corporation of Dubai (ICD) is offloading one billion ordinary shares and will retain 80 per cent of Alec's remaining stake.

Alec is expected to distribute a cash dividend of Dh200 million in April 2026, and a cash dividend of Dh500 million with respect to the financial year ending December 31, 2026, with the first payment being made in October 2026 and the second payment made in April 2027.

Based on the financial year dividend of Dh500 million, the offer price range implies a dividend yield from around 7.1 per cent at the high end of the price range to around 7.4 per cent at the low end of the price range. Thereafter, the company 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 generated for the relevant financial period, subject to the approval of the Board of Directors and the availability of distributable reserves.

Retail investors will be offered 5 per cent of the offer shares, 94 per cent for institutional investors, and 1 per cent for Alec and ICD employees.

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

The IPO subscription period started today and runs until September 30, 2025, for all tranches. The final offer price will be determined through a book-building process and is expected to be announced on October 1, 2025.

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.

The company is expected to list on the DFM on October 15, 2025.

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