Alec Holdings Prices IPO At Top End Of Price Range, Raising Dh1.4 Billion

Alec Holdings announced on Wednesday the final offer price of its initial public offering, pricing it at the top end of Dh1.4 per share, raising Dh1.4 billion.

The engineering and construction group said the IPO was substantially oversubscribed, attracting strong demand from investors across the UAE, the Gulf Cooperation Council (GCC) and international markets. Its IPO's aggregate demand was approximately Dh30 billion ($8.1 billion), resulting in an oversubscription of more than 21 times across all tranches.

This is the UAE's largest construction IPO ever - by both valuation and size - and the first IPO in the sector in over 15 years.

The implied market capitalisation of Alec Holdings upon listing on the Dubai Financial Market will be Dh7 billion ($1.91 billion).

A total of one billion shares, equivalent to 20 per cent of Alec's share capital, were offered by the Investment Corporation of Dubai (ICD). The Dubai sovereign wealth fund controls the remaining 80 pr cent stake in the company.

Barry Lewis, Chief Executive Officer of Alec Holdings, said the IPO drew strong demand and significant interest from a diverse and high-quality investor base.“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,” he said.

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 2026, with the first payment to be made in October 2026 and the second payment in April 2027.

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.

The completion of the offering and admission are currently expected to take place on October 15, 2025, under the symbol“Alec” on the Dubai Financial Market (DFM).

Emirates NBD Bank was 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 were also appointed as receiving banks.

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