Alec Holdings is one of the leading construction and engineering companies in the UAE. Now, it has officially launched its initial public offering (IPO) on the Dubai Financial Market (DFM). Moreover, the company has set a price range of Dh1.35 to Dh1.40 per share. Hence, it implies a market capitalization of Dh6.75 billion to Dh7 billion at listings.
IPO Structure and Investor Allocation
The IPO will witness the Investment Corporation of Dubai (ICD), Alec’s sole shareholder, offload one billion ordinary shares. It is equivalent to 20 percent of the total share capital of Alec. Hence, this translates to an offering size of Dh1.35 billion to Dh1.40 billion. However, we have listed the allocation of shares’ details below:
- 94% for institutional investors
- 5% for retail investors
- 1% for Alec and ICD employees
In addition, 10 percent of the second tranche has been reserved for the Emirates Investment Authority (EIA) and the Pensions Social Security Fund of Local Military Personnel. However, unclaimed shares from these allocations will be transferred to professional investors.
Alec Holdings: Subscription Timeline and Listing
PC – Alec Holdings
Today, the IPO subscription period begins. However, it will run until the 30th of September 2025 across all tranches. Moreover, the final booking process will be set through a book-building process. However, it is expected to be announced on October 1, 2025. Moreover, the shares of Alec are anticipated to start trading on the DFM on the 15th of October 2025.
Leading global financial institutions are managing the offering. Moreover, the Emirates NBD Capital and JP Morgan Securities are performing as joint global coordinators and book runners. However, Abu Dhabi Commercial Bank and EFG-Hermes UAE Limited have also been appointed as joint book runners.
Dividend Policy and Financial Outlook
Alec Holdings has revealed plans for rewarding investors with a strong dividend payout. We have listed the rewards below:
- Dh200 million cash dividend in April 2026
- Dh500 million cash dividend for the 2026 financial year, paid in October 2026 and April 2027
It represents a dividend yield of 7.1% to 7.4% at the IPO price range. Beyond 2026, the company intends to distribute dividends semi-annually. Hence, there will be a minimum payout ratio of 50 percent of net profit due to board approval and reserve.
Alec reported 56% revenue growth in the first half of this year, which reached Dh5.36 billion, with net income of Dh239 million. However, its project pipeline stands at Dh35.4 billion due to significant contributions from major UAE and Saudi projects, including One Za’abeel, Dubai Hills Mall, and SeaWorld Abu Dhabi.
The Alec Holdings IPO is expected to attract strong demand from both institutional and retail investors, thanks to the company’s solid track record in delivering landmark projects across the UAE and the wider GCC region. With its presence in large-scale infrastructure, commercial, and entertainment developments, Alec Holdings has positioned itself as a key player in the Middle East construction sector.
Industry experts believe the IPO could become one of the most notable listings on the Dubai Financial Market (DFM) this year, given the firm’s ambitious pipeline of Dh35.4 billion in projects. Investors are also keen on Alec’s clear dividend strategy, which provides visibility and confidence in long-term returns. The planned semi-annual dividend distribution from 2026 onwards highlights the company’s strong financial management and commitment to shareholder value.
For retail investors, the allocation of 5 percent of the offering presents an opportunity to participate in the UAE’s growing capital markets. Meanwhile, institutional investors are likely to see Alec as a gateway to exposure in the booming real estate, infrastructure, and mega-project development markets in Dubai and Saudi Arabia.
Overall, the Alec IPO reflects Dubai’s push to expand market activity and attract global capital into its stock exchange.
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