Dubai considers IPO for ALEC amidst property boom: Reports

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Dubai is contemplating the possibility of an initial public offering (IPO) for construction firm ALEC Engineering & Contracting, amidst a surge in its real estate sector as property prices in the emirate hit near-record levels, reported Bloomberg.

The report cited sources familiar with the matter to reveal that state-backed Investment Corporation of Dubai (ICD) has initiated preliminary discussions regarding a potential IPO and listing of ALEC.

IPO push as real estate sector booms

The construction company, which operates within various sectors including hospitality, leisure, retail, airport, residential, and commercial projects, could become the latest addition to Dubai’s roster of publicly traded companies.

ICD, the investment arm of the Dubai government, has yet to disclose specific details regarding the IPO, including the size and timing of the share offering.

Discussions are still ongoing, and ICD retains the option to opt out of the listing, as reported by Bloomberg on Tuesday.

In 2017, ICD acquired ALEC from the Al Jaber Group, which is headquartered in Abu Dhabi.

Since then, ALEC has established itself as a prominent player in the construction industry, undertaking diverse projects across Dubai and beyond.

The potential IPO of ALEC comes amidst a robust property market in Dubai, driven by strong demand for both commercial and residential real estate. As deliberations continue, market observers eagerly await further developments regarding ALEC’s potential debut on the stock market.

Push for IPOs

The news surrounding ALEC comes after the recent stellar IPO debut of Parkin. The Parkin shares made a strong debut rising more than 35 per cent on Thursday.

Parkin is the first IPO of 2024 in the UAE. It was spun out from the parking unit of the Dubai Roads and Transport Authority (RTA).