ALEC Holdings Sets IPO Price Range And Subscription Period For Dubai Financial Market Listing

ALEC Holdings, a diversified engineering and construction group, has revealed the price range for its initial public offering (IPO) on the Dubai Financial Market (DFM). The share price is set between AED1.35 and AED1.40, indicating a market capitalisation of AED6.75 billion to AED7 billion. The subscription period for this listing has now commenced.

The IPO involves offering 1 billion ordinary shares, which constitute 20% of ALEC's share capital. This translates to an offering size ranging from AED1.35 billion to AED1.40 billion. All shares in this offering are existing ones, with the Investment Corporation of Dubai (ICD) selling 20% of its stake in ALEC.

ALEC's dividend policy, as outlined in its UAE prospectus and international memorandum, anticipates a cash dividend distribution of AED200 million in April 2026. For the financial year ending December 31, 2026, a total dividend of AED500 million is planned, payable in October 2026 and April 2027.

Following the IPO, ICD will retain an 80% ownership unless the offering size changes. ICD can adjust the offering size before the subscription period ends, subject to UAE law and approval from the Securities and Commodities Authority.

The Emirates Investment Authority and the Pensions and Social Security Fund for Local Military Personnel in Dubai will each receive 10% of the total offer shares from the second tranche. If these entities do not exercise their preferential rights to subscribe, other professional investors can purchase these shares.

The subscription period is open until September 30, 2025, for all investor tranches. The final offer price will be determined through a bookbuilding process and announced on October 1, 2025.

Listing Timeline and Price Stabilisation

The listing on DFM is anticipated to occur on October 15, 2025, pending market conditions and regulatory approvals in the UAE. xCube LLC has been appointed by the selling shareholder as the price stabilisation manager for this offering.

In line with applicable laws and regulations, ALEC may conduct price stabilisation transactions involving up to 100 million shares. This measure aims to support share prices post-listing.

The expected dividend yield based on a AED500 million payout would be approximately 7.1% at the higher end of the price range and around 7.4% at the lower end. ALEC plans to adopt a semi-annual dividend policy thereafter, with payments in April and October each year.

This policy will ensure that at least half of net profits are distributed as dividends during relevant periods, contingent upon board approval and available reserves.

With inputs from WAM