ALEC Holdings, a market-leading diversified engineering and construction group, today announced the offer price range per share and the start of the subscription period for its initial public offering (IPO) on the Dubai Financial Market (DFM).

 

The price range for the Offering has been set at between AED1.35 and AED1.40 per share, implying a market capitalisation at listing of between AED6.75 billion ($1.84 billion) and AED7 billion ($1.91 billion).

 

A total of 1,000,000,000 (one billion) offer shares, equivalent to 20% of ALEC’s share capital, will be offered, resulting in a total offering size of between AED1.35 billion ($368 million) and AED1.40 billion ($381 million), the company said.

 

All of the offer shares are existing shares, with ICD, the principal investment arm of the Government of Dubai, selling 20% of its ownership in the company. ALEC will not receive any proceeds from the offering. 

 

Following the offering, and subject to the size of the offering not being increased, the selling shareholder will continue to hold a stake of 80% in the company. ICD reserves 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 the applicable laws and the approval of the SCA, it said.

 

Based on the announced dividend policy, which is available in the UAE Prospectus and the International Offering Memorandum, ALEC is expected to distribute a cash dividend of AED00 million in April 2026, and a cash dividend of AED500 million with respect to the financial year ending 31 December 2026, with the first payment being made in October 2026 and the second payment made in April 2027. Based on the financial year dividend of AED500 million, the offer price range implies a dividend yield from c. 7.1% at the high end of the Price Range to c. 7.4% at the low end of the Price Range. 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.

 

Subscription Process

As previously announced, the Offering consists of three tranches:

i. Individual Subscribers Offering (First Tranche), 5% of the offer shares, which is directed at retail investors and eligible entities holding a National Investor Number (NIN) with the DFM (Individual Subscribers);

 

ii. Professional Investors Offering (Second Tranche), 94% of the offer shares, which is directed at qualified institutional investors outside the United States under Regulation S, subject to applicable UAE laws and SCA approval (Professional Investors); and

 

iii. Eligible ALEC and ICD Employees Offering (Third Tranche), 1% of the offer shares, which is directed at eligible employees of ALEC and eligible employees of ICD (Eligible ALEC and ICD Employees).

 

Further, a number of ordinary shares, representing 10% of all offer shares (deducted from the total size of the Second Tranche), are reserved for Emirates Investment Authority (EIA) and the Pensions Social Security Fund of Local Military Personnel, 5% each. If the EIA and the Fund do not exercise their preferential rights to apply for offer shares, then those shares will be available to other Professional Investors.

 

The IPO subscription period starts today (Sept 23) and runs until 30 September 2025 for all tranches. The final offer price will be determined through a book-building process and is expected to be announced on 1 October 2025.

 

The completion of the offering and admission are currently expected to take place on 15 October 2025, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM. - TradeArabia News service