ALEC Holdings PJSC has announced its intention to float 20 percent of its share capital on the Dubai Financial Market through an Initial Public Offering. This ALEC Holdings IPO on the Dubai Financial Market, backed by the Investment Corporation of Dubai (ICD), will give investors access to one of the region’s most established engineering and construction groups with a track record of delivering complex projects and uninterrupted profitability for nearly two decades.
The IPO will open for subscription on 23 September 2025 and close on 30 September 2025, with trading expected to commence on or around 15 October 2025 under the ticker ALEC.
Offering at a Glance
ICD, the sole shareholder, will sell 1 billion ordinary shares, equal to 20 percent of ALEC’s issued capital. Post-listing, ICD will remain the majority shareholder with 80 percent ownership.
The shares will be offered in three tranches:
- Retail investors (First Tranche): 50 million shares (5%). Minimum guaranteed allocation of 2,000 shares.
- Professional investors (Second Tranche): 940 million shares (94%). Ten percent of this tranche is reserved equally for the Emirates Investment Authority and the Pensions Social Security Fund of Local Military Personnel.
- Eligible employees (Third Tranche): 10 million shares (1%). Minimum guaranteed allocation of 10,000 shares.
xCube LLC has been appointed as the price stabilisation manager to support trading activity post-listing.
Strong Financial Growth
ALEC has recorded consistent growth across revenue, profitability, and project backlog.
Revenue
- FY 2023: AED 6.3 billion
- FY 2024: AED 8.1 billion (+29%)
- H1 2025: AED 5.36 billion (+56% year-on-year)
Profitability
- EBITDA FY 2024: AED 646 million, margin 8.0%
- H1 2025 EBITDA: AED 437 million, margin 8.2%
- Net income FY 2024: AED 363 million, margin 4.5%
Backlog
- Dec 2023: AED 22.1 billion
- Dec 2024: AED 27.5 billion
- Jun 2025: AED 35.4 billion (3.5x revenue coverage)
Nearly 80 percent of the current backlog has been secured in the past two years, highlighting the company’s momentum and visibility in earnings.
Dividend Policy
ALEC intends to distribute dividends regularly, balancing shareholder returns with reinvestment in growth:
- AED 200 million in April 2026
- AED 500 million for FY 2026, split between October 2026 and April 2027
- Semi-annual dividends thereafter, with a minimum payout ratio of 50 percent of net profit
If suitable growth opportunities are not identified, the payout may be higher than the minimum.
Strategic Positioning
Founded in 1999 and acquired by ICD in 2017, ALEC has built a reputation as the contractor of choice for technically complex and iconic projects. Its portfolio includes One Za’abeel in Dubai, SeaWorld Abu Dhabi, and Dubai Hills Mall.
The company diversified further with the acquisition of Target Engineering in 2022, extending its presence into the energy sector, and its entry into Saudi Arabia, where it secured a landmark win at Qiddiya. ALEC is also positioning itself as a leading contractor for airports, hospitality, and data centres — sectors forecast to see sustained growth over the next decade.
According to MEED, project spend in the UAE is expected to rise 76 percent to AED 304 billion by 2033, while Saudi Arabia is forecast to more than double to AED 410 billion by 2033. ALEC’s scale, expertise, and integrated services position it well to capture a significant share of this activity.
Leadership and Governance
ALEC is led by an experienced management team and board supported by ICD, the principal investment arm of the Government of Dubai.
- Chairman H.E. Hussain Nasser Lootah described the IPO as a natural next step, reinforcing ALEC’s commitment to governance and sustainable returns.
- CEO Barry Lewis emphasised growth opportunities in Saudi giga-projects and data centres, highlighting ALEC’s integrated offerings and disciplined project execution.
The company employs around 47,500 people, with leadership continuity reflected in more than 60 percent of the C-suite serving for over 15 years.
IPO Timeline
- 15 September 2025: Intention to float announced
- 23 September 2025: Subscription opens and price range announced
- 30 September 2025: Subscription closes
- 1 October 2025: Final offer price announced
- 7 October 2025: Allocation
- 8 October 2025: Refunds and general assembly
- 15 October 2025: Expected listing on DFM
Investor Outlook
The Initial Public Offering of ALEC Holdings offers investors entry into a company that combines a record AED 35.4 billion backlog, strong profitability, and a clear dividend policy with exposure to two of the fastest-growing construction markets in the world.
For retail and institutional investors alike, the IPO provides both income visibility and growth potential. At the same time, the listing aligns with Dubai’s agenda of deepening its capital markets and raising the global profile of its flagship companies.
