ALEC Holdings Prices IPO At Dh1.351.40, Subscription Kicks Off

2025-10-12 05:10:39

(MENAFN- The Arabian Post)

Dubai's engineering and construction powerhouse ALEC Holdings PJSC has fixed its IPO share price between AED 1.35 and AED 1.40, opening subscriptions for a 20 percent stake in the company. The offering will feature 1 billion existing shares, valuing the company at AED 6.75 billion to AED 7 billion at the time of listing.

The subscription period began on 23 September and will close on 30 September 2025, with allocation split across three tranches: 5 percent for retail investors, 94 percent for institutional/professional investors, and 1 percent for ALEC and ICD employees. The sale comprises existing shares held by the Investment Corporation of Dubai, which will retain 80 percent ownership following the offering, subject to any adjustments before subscription close.

Final pricing will be determined via a book-building process by 1 October, and the company expects to begin trading on the Dubai Financial Market on 15 October 2025, pending regulatory approvals. A 180-day lock-up period will apply to the shares still held by ICD.

ALEC has committed to paying AED 200 million in cash dividends in April 2026 and AED 500 million for the full year ending 31 December 2026, split into payments in October 2026 and April 2027. Based on the price range, the implied dividend yield ranges from about 7.1 percent at the upper end to about 7.4 percent at the lower end. The company has pledged thereafter to distribute at least 50 percent of its net profits annually, with dividends paid semi-annually in April and October, subject to board approval and available reserves.

Authorities have designated xCube LLC as the price stabilisation manager, authorised to engage in stabilisation trades on up to 100 million shares to support aftermarket pricing. The IPO structure complies with Shariah principles, confirmed by the Internal Shariah Supervision Committee of Emirates NBD Bank.

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The deal is being managed by a syndicate of financial institutions: Emirates NBD Capital and J. P. Morgan Securities as joint global coordinators and joint bookrunners; Abu Dhabi Commercial Bank and EFG-Hermes UAE are joint bookrunners. Receiving banks include Emirates NBD, ADCB, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq, and Wio Bank.

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