ALEC Holdings debuts on DFM in UAE’s largest-ever construction IPO

Dubai Financial Market (DFM) welcomed the successful debut of ALEC Holdings, a diversified engineering and construction group headquartered in Dubai.

The listing marks the UAE’s largest-ever initial public offering (IPO) in the construction sector, by both valuation and size, and the first in the sector in over 15 years. It underscores Dubai’s position as a leading global investment hub and the Emirate’s strategic drive to diversify its capital markets across priority sectors.

The Company’s successful debut on the DFM follows the completion of a fully subscribed initial public offering (IPO), which raised Dhs1.4 billion ($381 million) through the sale of 1 billion existing ordinary shares by the Selling Shareholder, the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai.

The offering represented 20 per cent of the Company’s issued share capital.

Following the listing, the Investment Corporation of Dubai (ICD), ALEC’s sole selling shareholder, retains an 80 per cent stake in the Company.

The IPO was priced at Dhs1.40 per share, at the top end of the announced price range, implying a market capitalisation of Dhs7 billion ($1.91 billion) at listing. The offering attracted strong demand from a diverse base of regional and international investors, generating total subscriptions of approximately Dhs30 billion ($8.1 billion) and an oversubscription level of more than 21 times across all tranches. It also recorded one of the highest levels of non-UAE investor participation among recent government-related listings on the DFM, signalling the continued diversification of Dubai’s investor base.

To mark the listing, Barry Lewis, Chief Executive Officer of ALEC Holdings, rang the market-opening bell at DFM in the presence of Helal Al Marri, Chairman of the DFM Board of Directors, and Hamed Ali, Chief Executive Officer of DFM and Nasdaq Dubai.

Barry Lewis said, “Today marks a proud and defining milestone in ALEC’s journey. Our listing on the Dubai Financial Market reflects over two decades of steady growth, operational excellence, and a steadfast commitment to delivering complex, high-quality projects that define skylines and advance transformational national ambitions across the UAE and Saudi Arabia. This achievement is the result of the collective dedication of our people and the trust of our clients and partners, who have been instrumental to our success. It also represents the beginning of a new chapter, one that will see ALEC continue to grow, innovate, and create sustainable long-term value under the enhanced governance and transparency that come with being a listed company.

“The DFM has played a vital role in enabling our successful IPO journey, offering a dynamic platform that attracts a broad mix of high-quality investors, including leading regional and international institutions. We are proud to join a market that is driving capital market development in the region and look forward to continuing our growth story as a listed company.”

Helal Al Marri said, “ALEC’s listing on the DFM marks another important step in the continued growth and diversification of Dubai’s capital markets. We are expanding access to equity markets for leading national companies across priority sectors, deepening investor participation, and supporting Dubai’s sustainable economic development. Each new listing reinforces Dubai’s position as a trusted and dynamic financial centre connecting regional enterprises with global capital.”

Hamed Ali added, “The listing of ALEC Holdings reflects the continued momentum of Dubai’s capital markets and the confidence of investors in the UAE’s economic outlook. It also highlights the breadth of sectors choosing DFM as their platform for growth and visibility. As we enhance market infrastructure and broaden access to investment opportunities, we remain committed to supporting issuers and investors through an open, transparent, and globally connected marketplace.”

In line with its dividend policy, ALEC intends to distribute a cash dividend of Dhs200 million in April 2026, followed by Dhs500 million for the 2026 financial year, payable in October 2026 and April 2027.

Based on the 2026 dividend and final offer price of Dhs1.40 per share, this represents a dividend yield of 7.1 per cent at listing. Thereafter, the Company intends to pay dividends twice a year, in April and October, with a minimum payout ratio of 50 per cent of net profit, subject to Board approval.

The Company’s shares commenced trading today under the ticker symbol “ALEC” and ISIN “AEE01710A255,” The listing comes amid a period of strong performance for Dubai’s capital markets. As of June 2025, total market capitalisation on DFM reached Dhs995 billion, supported by higher trading activity and growing institutional participation.

WAM