ALEC Holdings Announces Offer Price Range, IPO Subscription Period On DFM

DUBAI, (UrduPoint / Pakistan Point News / WAM - 23rd Sep, 2025) ALEC Holdings, a diversified engineering and construction group, today announced the price range for its initial public offering and the start of the subscription period for its listing on the Dubai Financial Market (DFM).

The price range has been set between AED1.35 and AED1.40 per share, implying a market capitalisation at listing of between AED6.75 billion and AED7 billion.

A total of 1,000,000,000 (one billion) ordinary shares will be offered, representing 20 percent of ALEC’s share capital. This puts the total offering size between AED1.35 billion and AED1.40 billion.

All shares being offered are existing shares. The Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai, is selling 20 percent of its ownership in the company. As such, ALEC will not receive any proceeds from the offering.

Following the offering—unless the offering size is increased—the selling shareholder will retain an 80 percent stake in the company. ICD reserves the right to amend the offering size at any time before the end of the subscription period at its sole discretion, subject to UAE law and approval from the Securities and Commodities Authority.

According to the dividend policy outlined in the UAE prospectus and the international offering memorandum, ALEC expects to distribute a cash dividend of AED200 million in April 2026, and AED500 million for the financial year ending 31st December 2026. The latter will be paid in two instalments—October 2026 and April 2027.

Based on the announced AED500 million dividend, the implied dividend yield from the offering price range would be approximately 7.1 percent at the upper end and around 7.4 percent at the lower end.

Thereafter, ALEC expects to adopt a semi-annual dividend policy, paying in April and October of each year, with a payout ratio of no less than 50 percent of net profits for the relevant period, subject to board approval and availability of distributable reserves.

Ten percent of the total offer shares (deducted from the second tranche) will be allocated equally to the Emirates Investment Authority and the Pensions and Social Security Fund for Local Military Personnel in Dubai. If either entity does not exercise its preferential right to subscribe, the shares will be made available to other professional investors.

The subscription period opens today and will continue until 30th September 2025 for all investor tranches. The final offer price will be determined through a bookbuilding process and is expected to be announced on 1st October 2025.

Subject to market conditions and regulatory approvals in the UAE, including DFM listing and trading approval, the listing and start of trading are currently expected on 15th October 2025.

In relation to the offering, the selling shareholder has appointed xCube LLC as price stabilisation manager. In accordance with applicable laws and regulations, the company may conduct price stabilisation transactions on up to 100,000,000 shares.