ALEC Holdings Makes Historic Debut On DFM With UAE's Largest Construction Sector IPO

Dubai Financial Market (DFM) celebrated the successful listing of ALEC Holdings, a prominent engineering and construction firm based in Dubai. This event marks the UAE's largest initial public offering (IPO) in the construction sector by both valuation and size, and the first in over 15 years. It highlights Dubai's role as a global investment hub and its strategic efforts to diversify capital markets across key sectors.

The IPO raised AED1.4 billion (US$381 million) through selling 1 billion existing ordinary shares by the Investment Corporation of Dubai (ICD), which is Dubai's main investment arm. This offering represented 20% of ALEC’s issued share capital. Post-listing, ICD retains an 80% stake in ALEC Holdings.

The IPO was priced at AED1.40 per share, reaching the top end of the announced range, resulting in a market capitalisation of AED7 billion (US$1.91 billion). The offering attracted significant interest from regional and international investors, with total subscriptions reaching approximately AED30 billion (US$8.1 billion), indicating an oversubscription level exceeding 21 times across all tranches.

Barry Lewis, CEO of ALEC Holdings, marked this milestone by ringing the market-opening bell at DFM. He was accompanied by Helal Al Marri, Chairman of the DFM Board of Directors, and Hamed Ali, CEO of DFM and Nasdaq Dubai. Barry Lewis stated, "Today marks a proud and defining milestone in ALEC’s journey. Our listing on the Dubai Financial Market reflects over two decades of steady growth, operational excellence, and a steadfast commitment to delivering complex, high-quality projects that define skylines and advance transformational national ambitions across the UAE and Saudi Arabia."

Helal Al Marri commented on ALEC’s listing as a crucial step for Dubai's capital markets' growth and diversification. He noted that expanding access to equity markets for leading national companies supports Dubai’s sustainable economic development. Each new listing strengthens Dubai’s reputation as a trusted financial centre connecting regional enterprises with global capital.

Hamed Ali added that ALEC Holdings' listing demonstrates ongoing momentum in Dubai’s capital markets and investor confidence in the UAE’s economic outlook. It underscores the variety of sectors choosing DFM for growth and visibility as market infrastructure improves.

Dividend Policy

ALEC plans to distribute a cash dividend of AED200 million in April 2026, followed by AED500 million for the 2026 financial year payable in October 2026 and April 2027. Based on these dividends and an offer price of AED1.40 per share, this equates to a dividend yield of 7.1% at listing. Future dividends will be paid twice yearly with a minimum payout ratio of 50% of net profit.

ALEC shares began trading under "ALEC" with ISIN "AEE01710A255." This listing coincides with strong performance in Dubai's capital markets. By June 2025, DFM's total market capitalisation reached AED995 billion due to increased trading activity and institutional participation.

Total traded value rose by 77% year-on-year to AED85 billion, with institutional investors contributing to 71% of activity. In the first half of 2025 alone, DFM gained over 53,000 new investors—84% being foreign—showcasing its growing global investor base and confidence in Dubai’s economic future.

With inputs from WAM