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ALEC Holdings plans to sell a 20% stake in an IPO, aiming to raise around USD 400 million. The subscription period will open later this month, and shares are expected to debut on the Dubai Financial Market around mid-October. Post-IPO, ICD will retain 80% ownership. ALEC plans a AED 500 million (USD 136.13 million) dividend for 2026 and will continue semi-annual payouts with a minimum of 50% of net profit. The move takes place amid a booming construction sector, rising housing demand, and strong performance in Dubai's equity market.
ALEC Holdings, a Dubai-based engineering and construction company, has announced plans to sell 1 billion shares, representing a 20% stake, in an initial public offering. The move comes as investor demand remains strong and the Gulf construction sector continues to grow. The IPO is expected to raise around USD 400 million, according to sources familiar with the matter. Advertisement
The subscription period is scheduled for later this month, with the offer price set to be announced shortly after. The company expects its shares to begin trading on the Dubai Financial Market around mid-October.
Currently fully owned by the Investment Corporation of Dubai (ICD), ALEC Holdings will retain majority ownership after the IPO, with ICD holding an 80% stake. The company plans to distribute a cash dividend of AED 500 million (USD 136.13 million) for the 2026 financial year and intends to continue semi-annual dividend payments, with a minimum payout of 50% of net profit.
ALEC has a strong presence in the UAE and has been operating in Saudi Arabia since 2020. When asked about the IPO and its fundraising goals, the company said it does not comment on market speculation, following its company policy.
The UAE IPO market has grown significantly in recent years, supported by major listings from both state-backed and private companies, generating billions in new equity. After a wave of initial offerings, attention has shifted to follow-on offerings, as shareholders ranging from sovereign wealth funds to family-owned businesses look to reduce their stakes through public markets.
Gulf construction companies are benefiting from rising housing demand and increased infrastructure spending, partly driven by Dubai's recovering real estate market. Dubai itself has recently exceeded a population of 4 million, reflecting rapid urban growth.
The Dubai Financial Market's equity index has gained over 16% this year, making it one of the top-performing regional benchmarks and outpacing the S&P 500 index. Emirates NBD Capital and J.P. Morgan have been appointed as joint global coordinators and joint bookrunners for the IPO.
Source- Reuters
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