IPO update: ALEC Holdings plans to list on Dubai Financial Market

Image courtesy: ALEC Holdings

ALEC Holdings, a Dubai-based engineering and construction group, said on Monday it plans to list 20 per cent of its share capital on the Dubai Financial Market (DFM) through an initial public offering (IPO).

The Investment Corporation of Dubai (ICD), the company’s sole shareholder, will sell one billion shares in the offering, which opens on September 23 and closes on September 30.

ICD retains the right to amend the size of the offering before the end of the subscription period, subject to laws and approval from the Securities and Commodities Authority (SCA).

Shares are expected to begin trading on or around October 15 under the ticker “ALEC”.

The Internal Shariah Supervision Committee of Emirates NBD Bank has confirmed that the offering is compliant with Shariah principles.

The IPO will be open to individual subscribers, professional investors outside the United States, and eligible employees of ALEC and ICD.

ICD will hold 80 per cent of ALEC’s issued share capital after the IPO, assuming all shares are sold.

ALEC, founded in 1999 and acquired by ICD in 2017, is active in large-scale, complex and iconic construction and energy projects across the UAE and Saudi Arabia.

It has built projects including One Za’abeel in Dubai, SeaWorld Abu Dhabi and Dubai Hills Mall.

Alec Holdings’ reports H1 revenue of Dhs5.4bn

The company reported revenue of Dhs8.1bn in 2024, up from Dhs6.3bn in 2023. Its revenue hit Dhs5.4bn in H1 2025.

Net income reached Dhs363m in 2024, compared to Dhs238m in 2023. Its backlog stood at Dhs35.4bn as of June 30.

ALEC said it intends to pay a cash dividend of Dhs200m in April 2026 and Dhs500m for the 2026 financial year, payable in October 2026 and April 2027. Thereafter, it expects to pay dividends semi-annually, with a minimum payout ratio of 50 per cent of net profit.

Chairman Hussain Nasser Lootah said: “This IPO is a natural next step in ALEC’s journey. Over the past two and a half decades, we have built a strong reputation as a trusted regional leader… We enter the public markets from a position of strength.”

CEO Barry Lewis said the IPO reflects ALEC’s growth and opportunities in the UAE and Saudi Arabia. “Our strategy is clear and focused: expand our UAE leadership… and target high-profile Saudi giga-projects that match our expertise,” he said.

Emirates NBD Capital and J.P. Morgan are joint global coordinators and joint bookrunners.

Abu Dhabi Commercial Bank and EFG-Hermes are joint bookrunners, while Moelis & Company UK LLP DIFC Branch is independent financial adviser.