ALEC Holdings Prices Its IPO At Top End Of Price Range, Raising AED1.4 Billion

DUBAI, (UrduPoint / Pakistan Point News / WAM - 01st Oct, 2025) ALEC Holdings PJSC, a market-leading diversified engineering and construction group, today announced that it has successfully completed the book building and subscription process for its IPO on 30th September 2025, and has set the final offer price at AED1.40 per share, at the top end of the previously announced price range.

A total of 1,000,000,000 (one billion) ordinary shares, equivalent to 20 percent of ALEC’s share capital, were on offer by the Investment Corporation of Dubai, the principal investment arm of the Government of Dubai.

Based on the final offer price, ALEC has successfully raised AED1.4 billion (US$ 381 million), implying a market capitalisation of AED7.0 billion (US$1.91 billion) upon listing on the DFM. Marking a historic milestone, this is the UAE’s largest ever construction IPO in terms of both valuation and size and the first IPO in the sector in over 15 years.

All of the Offer Shares are existing shares currently held by the Selling Shareholder, and ALEC will not receive any proceeds from the Offering. Following the Offering, ICD will continue to hold a stake of 80 percent in the Company.

Pursuant to the Company’s dividend policy, which is available in the UAE Prospectus and the International Offering Memorandum, ALEC is expected to distribute a cash dividend of AED200 million in April 2026, and a cash dividend of AED500 million with respect to financial year 2026, with the first payment to be made in October 2026 and the second payment in April 2027.

Based on the financial year 2026 dividend of AED500 million and final offer price of AED1.40 per share, the dividend yield will be 7.1 percent upon listing. 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 percent 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.

The Offering attracted considerable interest from a broad range of high-quality investors with a total gross demand of approximately AED30 billion (US$8.1 billion), resulting in an oversubscription of more than 21 times across all three tranches. The IPO recorded one of the highest levels of non-UAE investor participation among recent UAE government-related listings on the DFM.

Investors that participated in the Individual Subscribers Offering (First Tranche) and Eligible ALEC and ICD Employees Offering (Third Tranche) will be notified of their allocation of shares via SMS on 7 October 2025, with refunds due to commence from 8 October 2025.

Barry Lewis, Chief Executive Officer of ALEC Holdings, said, “We are proud that ALEC’s IPO drew strong demand and significant interest from a diverse and high-quality investor base. This is a clear vote of confidence in ALEC’s distinct value proposition and disciplined operating model.

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. We are deeply thankful to our new shareholders for placing their trust in ALEC, and we look forward to the journey ahead as we continue to scale, deliver, and grow value together.”

The completion of the Offering and Admission are currently expected to take place on 15 October 2025 under the symbol “ALEC” and ISIN “AEE01710A255”, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

Pursuant to an underwriting agreement entered into between the Company, the Selling Shareholder, and the Joint Bookrunners on 23rd September 2025 (“Underwriting Agreement”), the remaining ordinary shares held by the Selling Shareholder following Admission shall be subject to a lock-up which starts on the date of Admission and ends 180 days thereafter, subject to certain permitted transfers as set out in the Underwriting Agreement. The Company will also be subject to a 180-day lock-up period following the date of Admission pursuant to the terms of the Underwriting Agreement.

In connection with the Offering, the Selling Shareholder will allocate proceeds from the sale of up to 100,000,000 (one hundred million) Offer Shares to xCube LLC, a DFM-authorised price stabilisation manager. These proceeds may be used, to the extent permitted by applicable law, regulations and rules, to effect stabilisation transactions on the DFM. The Joint Bookrunners and their respective directors, officers, employees, agents, and affiliates will not be involved in, responsible for, or benefit from any such transactions, which will be carried out solely by xCube LLC.

The Internal Shariah Supervision Committee of Emirates NBD has issued a pronouncement confirming that, in their view, the Offering is compliant with Shariah principles.

Emirates NBD Capital PSC and J.P. Morgan Securities PLC have been appointed as joint global coordinators and joint bookrunners, and Abu Dhabi Commercial Bank PJSC and EFG-Hermes UAE Limited acting in conjunction with EFG Hermes UAE LLC and together with EFG Ltd., have been appointed as joint bookrunners (together with the Joint Global Coordinators, the “Joint Bookrunners”). Moelis & Company UK LLP DIFC Branch has been appointed as independent financial adviser (the “Independent Financial Adviser”).

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank, Commercial Bank of Dubai PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Mashreq Bank PJSC and Wio Bank PJSC have also been appointed as Receiving Banks. Emirates NBD Bank PJSC’s IPO call centre can be reached at 800 ENBD IPO (800 3623 476).