ALEC Holdings, a market-leading diversified engineering and construction group, today announced its intention to list 20% of its share capital on the Dubai Financial Market (DFM) through an initial public offering (IPO).

 

Investment Corporation of Dubai (ICD), the selling shareholder, will retain the right to amend the size of the offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities and Commodities Authority (SCA), said a statement.

 

ALEC Holdings has its operations focused on large-scale, complex and iconic buildings and energy projects in the United Arab Emirates and the Saudi Arabia.

 

Summary of the Offering

* ICD, the principal investment arm of the Government of Dubai, is currently the sole shareholder of ALEC and is offering 1,000,000,000 (one billion) ordinary shares through the offering.

 

* The offering subscription period is expected to run from September 23 to September 30 (both days included).

 

* The offering will be made available to (i) Individual Subscribers, as part of the First Tranche, (ii) Professional Investors outside the United States, as part of the Second Tranche, and (iii) ALEC Eligible Employees and ICD Eligible Employees, as part of the Third Tranche.

 

* Admission of shares for trading on the DFM is anticipated on or around October 15, 2025.

 

* The Internal Shariah Supervision Committee of Emirates NBD Bank has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles, the company said.

 

Investment highlights, according to the company are:

* Longstanding track record of financial and commercial success. Sustained operational excellence and strong financial management discipline have allowed ALEC to deliver uninterrupted profitability for the past 18 years, successfully navigating macroeconomic and geopolitical disruptions without compromising financial stability. As of June 2025, ALEC ranks among the UAE’s leading construction players by value of work under execution, reinforcing its scale, credibility, and long-term relevance in the region.

* Operational excellence and risk management drive a sustainable edge. ALEC’s operational excellence, disciplined risk management, integrated capabilities, innovative methodologies, progressive use of technology, and people-first culture have driven its long-term success and given it a competitive advantage to deliver complex projects.

Unparalleled capabilities to deliver large-scale, complex and iconic projects. With a reputation as the contractor of choice for large, iconic and technically complex projects, ALEC delivers transformative developments across the UAE and KSA. Examples include One Za’abeel, a mixed-use development with the world’s longest cantilever, SeaWorld Abu Dhabi, the world’s largest indoor marine theme park, and Dubai Hills Mall, for which ALEC was awarded “Retail Project of the Year 2022”.

* Strongly positioned to capture significant growth in the UAE and KSA. ALEC is set to benefit from the significant expansion of construction and infrastructure activity in both the UAE and KSA, especially in segments where ALEC has strong expertise including hospitality, airports and data centres. According to the industry consultant MEED, total project spend in the UAE is expected to increase 76% to AED 304 billion by 2033 compared to AED173 billion in 2024. In KSA, total project spend is forecast to more than double to AED410 billion by 2033 compared to AED193 billion in 2024.

* Large and secured backlog set to drive visible growth. ALEC maintains a strong pipeline of large-scale projects, reflected in its AED35.4 billion backlog as at 30 June 2025, with 79% of the current backlog secured in the last two years, highlighting ALEC’s momentum and success in the marketplace. This robust backlog provides multi-year visibility on earnings and cash flow generation.

* Robust financial profile and significant acceleration in revenue and profits. ALEC has consistently delivered profitable and cash-generative growth, underpinned by disciplined execution, efficient capital deployment, a robust risk management framework, and a balanced project portfolio. This growth has accelerated in recent years, reflecting ALEC’s success in securing new projects and the strong demand from clients for highly-skilled contractors. ALEC is intending to distribute cash dividends through a clear dividend policy, reflecting its confidence in its cash flow strength and long-term earnings potential, while preserving flexibility for growth investments.

* Experienced and performance-focused management team supported by an accomplished Board of Directors and shareholder. ALEC is led by a high-calibre management team with deep sector experience and a long track record of successful project delivery, supported by a strategic and independent Board of Directors and a strong institutional shareholder, ICD, the principal investment arm of the Government of Dubai.

 

Dividend Policy

ALEC intends to distribute a cash dividend of AED200 million, payable in April 2026, and a cash dividend of AED500 million for the financial year ending 31 December 2026, payable in October 2026 and April 2027.

 

Thereafter, the company expects to distribute cash dividends on a semi-annual basis (in April and October of each year), with a minimum payout ratio of 50% of the net profit generated for the relevant financial period, subject to the approval of the Board of Directors and the availability of distributable reserves.

 

ALEC continues to evaluate accretive investment opportunities for growth. In the absence of suitable opportunities that meet the target investment criteria and returns, the company will consider distributing higher dividends than the minimum annual dividend, it said.

 

 

"This IPO is a natural next step in ALEC’s journey. Over the past two and a half decades, we have built a strong reputation as a trusted regional leader, delivering some of the most complex and iconic projects in the UAE and the GCC. Today, we stand as a diversified, award-winning construction group with a record backlog, a strong client base, and a proven track record of profitable growth," said Hussain Nasser Lootah, Chairman of ALEC Holdings.

 

<figure><img src="https://taimages.tradearabia.com/source/2025/09/15/alec.jpg" alt="alec.jpg" width="100%" style="max-width: 680px;margin: 0 auto;padding:10px 0px;"><figcaption style="text-align:center;">Hussain Nasser Lootah ...Chairman</figcaption></figure>

 

"We enter the public markets from a position of strength, supported by a buoyant regional construction sector underpinned by ambitious national agendas in our home market and in Saudi Arabia, and a favourable economic environment. As we become a publicly listed company, we are committed to rigorous governance, sustainable returns, and leading with integrity."

 

“The IPO of ALEC underscores the trust and reputation we’ve earned across our 26-year journey, the sustained financial growth we’ve delivered, and the exciting opportunities before us in two of the world’s most dynamic construction markets: the UAE and KSA," Barry Lewis, Chief Executive Officer of ALEC Holdings.

 

"We have executed and are currently working on some of the most complex and iconic projects across the UAE and in the Kingdom. Blue-chip clients choose ALEC for our specialised solutions, integrated offerings, disciplined approach, and strong execution capabilities – setting us apart from other contractors.

 

 

"Looking ahead, our strategy is clear and focused: expand our UAE leadership through ALEC’s reputation, partnerships, and integrated capabilities, and target high-profile Saudi giga-projects that match our expertise. We’re equally bullish on data centres. With the first phase of Stargate UAE secured, we’re set to deliver hyperscale, AI-optimised campuses across the region. As we scale, we’ll continue to prioritise high-margin, technically complex work with limited competition and strong pricing power. We’ll drive delivery excellence by investing in modern construction methods, including modular off-site manufacturing and parallel construction, to accelerate schedules, cut waste, and enhance sustainability.

 

"I’m confident that this listing will strengthen our governance, enhance transparency, and unlock new avenues for growth. We look forward to welcoming shareholders who share our vision, trust in our people, and have conviction in our potential,” he said. -TradeArabia News Service-TradeArabia News Service