Dubai’s ALEC Holdings to Sell 20% Stake in $400M IPO
ALEC Holdings, a Dubai-based engineering and construction company, said on Monday it will sell 20% of its shares through an initial public offering (IPO) on the Dubai Financial Market (DFM).
IPO details
The company plans to sell one billion shares, which could raise about $400 million, according to Reuters. The shares will be sold by the Investment Corporation of Dubai (ICD), the government’s investment arm and ALEC’s only shareholder.
The IPO subscription will run from September 23 to September 30, and trading is expected to begin on October 15.
The shares will be divided into three groups:
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Tranche 1 (5%): For retail investors, each will get at least 2,000 shares.
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Tranche 2 (94%): For institutional investors.
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Tranche 3: For employees of ALEC and ICD.
The final share price will be decided through a book-building process and announced on October 1. The price range will be shared by September 23. After the IPO, ICD will keep an 80% stake in ALEC. Shares will be allocated on October 7.
Dividend plan
After listing, ALEC plans to pay dividends:
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April 2026: $54.5 million (AED 200 million).
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Financial year 2026: $136.2 million (AED 500 million), split between October 2026 and April 2027.
Going forward, ALEC aims to pay dividends twice a year, giving out at least 50% of its net profit.
Business performance
ALEC is showing strong growth. By June 30, 2025, it had a project backlog worth $9.6 billion (AED 35.4 billion), with most contracts signed in the last two years.
Founded in 1999, ALEC has become a leading construction group in the UAE and Saudi Arabia. It works on large, complex projects and also offers services in fit-out, MEP (mechanical, electrical, plumbing), modular construction, energy, technology, facades, renewables, and equipment rental.
As of June 2025, ALEC ranked among the UAE’s top builders by project value.
For the first half of 2025, ALEC’s revenue jumped 56% year-on-year to $1.5 billion (AED 5.4 billion), while its EBITDA rose 8.2% to $119 million (AED 437 million).
Published: 16th September 2025
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