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.
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The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
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Fuel economy, combined: 7.0L / 100km
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
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Roy Orbison, Ooby Dooby (1956)
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Jerry Lee Lewis, Great Balls of Fire (1957)
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Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
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'Worse than a prison sentence'
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If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
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3. More tax audits
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4. More beneficial VAT and excise tax penalty regime
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5. Greater emphasis on statutory audit
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6. Further transfer pricing enforcement
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9. Reduced compliance obligations for imported goods and services
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10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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