ALEC Holdings PJSC has priced its Initial Public Offering at AED 1.40 per share, the top of the range, after attracting AED 30 billion in demand. The AED 1.4 billion sale of one billion shares was oversubscribed more than 21 times, setting a new record as the largest construction IPO in UAE history and the first sector listing in more than 15 years.
Record Demand for ALEC Holdings IPO
The offer drew overwhelming interest from investors across the UAE, the wider GCC, and international markets. Aggregate demand exceeded AED 30 billion (US$ 8.1 billion), making the transaction more than 21 times oversubscribed. According to the company, this also marked one of the highest levels of non-UAE participation among recent government-related IPOs on the Dubai Financial Market.
Allocations for retail and employee subscribers will be confirmed on 7 October, with refunds commencing from 8 October. Admission of shares for trading is expected on or around 15 October 2025 under the ticker symbol ALEC.
IPO Valuation and Market Capitalisation
- Offer size: AED 1.4 billion (US$ 381 million)
- Final price per share: AED 1.40
- Market capitalisation on listing: AED 7.0 billion (US$ 1.91 billion)
- Shares sold: 1 billion, representing 20% of ALEC’s issued capital
- Post-offer stake: Investment Corporation of Dubai retains 80%
All shares sold in the offering were existing shares owned by the Investment Corporation of Dubai. ALEC itself will not receive proceeds from the transaction.
Dividend Policy and Implied Yield
ALEC has reaffirmed its dividend policy, providing investors with clarity on returns:
- AED 200 million dividend in April 2026
- AED 500 million dividend for FY 2026, payable in October 2026 and April 2027
- Minimum payout ratio of 50% of net profit thereafter, on a semi-annual basis
At the final offer price, the FY 2026 dividend equates to a yield of 7.1 percent, among the most attractive in the UAE market.
Oversubscription Signals Strong Investor Confidence
Barry Lewis, Chief Executive Officer of ALEC Holdings, said the result demonstrates strong conviction in ALEC’s business model and market positioning. “The overwhelming response to our IPO is a clear vote of confidence in ALEC’s long-term strategy, disciplined operations, and ability to capture growth opportunities across the UAE and Saudi Arabia,” he commented.
The company enters the public markets with an AED 35.4 billion backlog, 18 consecutive years of profitability, and a strong reputation for delivering large-scale and technically complex projects including One Za’abeel, SeaWorld Abu Dhabi, and Dubai Hills Mall.
Listing and Price Stabilisation
Trading of ALEC Holdings shares is expected to commence on or around 15 October 2025, subject to approvals. Both ICD and ALEC will be subject to a 180-day lock-up period following admission.
To ensure stability, up to 100 million shares have been allocated to xCube LLC, authorised by the DFM to act as price stabilisation manager. These may be used to support the share price if it falls below the offer price during the stabilisation period.
The ALEC listing represents a milestone for Dubai’s capital markets. It reinforces the emirate’s strategy of bringing leading government-related entities to market, expands investor access to the construction sector for the first time in more than a decade, and demonstrates the continued ability of UAE IPOs to attract global capital.
With a combination of scale, backlog visibility, a clear dividend policy, and a 7.1 percent implied yield, ALEC’s debut stands out as one of the defining market transactions of 2025.
