ALEC Holdings Announces Intention To Float 20% Of Shares On Dubai Financial Market

ALEC Holdings plans to list 20% of its shares on the Dubai Financial Market through an Initial Public Offering (IPO). The Investment Corporation of Dubai (ICD), ALEC's sole shareholder, may adjust the offering size before the subscription period ends. This is subject to legal requirements and approval from the Securities and Commodities Authority.

ICD, as Dubai's main investment entity, will offer one billion ordinary shares in this IPO. The subscription period is set from 23rd to 30th September 2025. Shares are expected to start trading on the DFM around 15th October 2025 under the ticker "ALEC". The IPO will be available to individual subscribers, professional investors outside the US, and eligible employees of ALEC and ICD.

ALEC has shown consistent profitability over 18 years, maintaining financial stability despite economic challenges. In FY 2024, revenue more than doubled from AED3.6 billion in FY 2022 to AED8.1 billion. EBITDA increased from AED259 million in FY 2022 to AED646 million in FY 2024, with margins improving from 7.2% to 8%. Net income reached AED363 million in FY 2024.

The company plans a cash dividend of AED200 million in April 2026 and AED500 million for FY ending December 2026, payable in October 2026 and April 2027. Future dividends are expected semi-annually with at least a 50% payout ratio of net profit, pending board approval and reserve availability.

ALEC is renowned for handling large-scale projects like One Za’abeel, SeaWorld Abu Dhabi, and Dubai Hills Mall. These projects highlight ALEC's expertise in complex developments across the UAE and Saudi Arabia. As of June 30th, 2025, ALEC's project backlog stands at AED35.4 billion.

The company's reputation as a preferred contractor for iconic projects is well-established. ALEC has been recognised for its work on significant developments such as One Za’abeel with its record-breaking cantilever structure.

IPO Tranches and Allocation

The IPO consists of three tranches: First Tranche for individual subscribers with a minimum allocation of 2,000 shares; Second Tranche for professional investors holding most shares; Third Tranche for eligible employees with a minimum allocation of 10,000 shares each.

If the Third Tranche isn't fully subscribed, remaining shares will be available to First Tranche subscribers. The First Tranche holds five percent of offered shares (50 million), while the Second Tranche holds ninety-four percent (940 million). The Third Tranche contains one percent (10 million) of offered shares.

Leadership Insights

Hussain Nasser Lootah, Chairman of ALEC Holdings, stated that "This IPO is a natural next step in ALEC’s journey." He emphasised ALEC's strong regional leadership and commitment to governance as it enters public markets amid favourable economic conditions.

Barry Lewis, CEO of ALEC Holdings, remarked that "The IPO of ALEC underscores the trust and reputation we’ve earned across our 26-year journey." He highlighted growth opportunities in dynamic construction markets like UAE and KSA.

The Internal Shariah Supervision Committee at Emirates NBD Bank PJSC confirmed that the offering complies with Shariah principles. This adds another layer of assurance for potential investors interested in ethical investments.

With inputs from WAM