UAE construction and engineering company Alec Holdings has raised Dh1.4 billion ($381.2 million) from its initial public offering on the Dubai Financial Market, setting the price range at the top end of its float.
The company set the price at Dh1.40 per share, with the offering oversubscribed more than 21 times, the Dubai-based company said on Wednesday. The IPO recorded “one of the highest levels of non-UAE investor participation among recent UAE government-related listings on the DFM”, the company said.
The pricing implies a market capitalisation of Dh7 billion at the time of its listing.
The Investment Corporation of Dubai, the principal investment arm of the Dubai government, is currently the biggest shareholder of Alec and sold one billion ordinary shares, which equals 20 per cent of the company’s share capital.
The company expects its shares to start trading on the DFM on or around October 15, under the ticker “ALEC”.
The response to the IPO was a “clear vote of confidence” in the company, Barry Lewis, chief executive of Alec Holdings, said.
“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,” he said.
Alec had reserved 10 per cent of offered shares for the Emirates Investment Authority and the Pensions Social Security Fund of Local Military Personnel.
Both entities were entitled to subscribe to 5 per cent each of the reserved quota, however, if unsubscribed, those shares were to be offered to other professional investors, the company said last week.
The company is expected to distribute a cash dividend of Dh200 million in April 2026. It will also pay a dividend of Dh500 million for the 2026 financial year, with the first payment in October 2026 and the second payment in April 2027.
Founded in 1999, Alec became a subsidiary of ICD in 2017 and, along with its core construction business, offers services spanning fitout, mechanical, electrical and plumbing, modular construction, data centre solutions, energy solutions, technology, facades, renewables and equipment rental.
It has projects across the UAE and Saudi Arabia, including One Za’abeel, a mixed-use development in Dubai; indoor theme park SeaWorld Abu Dhabi; and Dubai Hills Mall.
The company last week said its revenue rose 56 per cent annually in the first half of the year to Dh5.36 billion, with net income reaching Dh239 million.
As of June-end, Alec’s pipeline of large-scale projects stood at Dh35.4 billion, with 79 per cent of the current backlog secured in the past two years.
Alec's public offering is the latest among a string of IPOs in the UAE's capital markets on strong investor demand as well as government efforts to boost the equity markets.
There were seven IPOs across the country last year, including by Talabat Holding, retailer Lulu Group, ADNH Catering, NMDC Energy and Alef Education. IPOs in the UAE accounted for 47 per cent, or $6.2 billion, of total stock launch proceeds in the Gulf region last year, according to PwC data.
The IPO momentum continued this year with the listing of Alpha Data on ADX and Dubai Residential Reit on the DFM. Alpha Data, a UAE technology company, raised $163 million from its offering, while Dubai Residential Reit's IPO size reached $584 million.
Last month, Dubai Investments said it plans to list up to 25 per cent of its unit Dubai Investments Park. The company, in which ICD also holds a stake, is currently in discussions with banks on the IPO, it said in a statement to the DFM.
Across the wider Gulf, $2.3 billion was raised from four IPOs in the second quarter of this year, a slight decrease from $2.6 billion raised from eight listings in the same period last year, according to PwC.
