Historic Listing on Dubai Financial Market
ALEC Holdings PJSC, a leading diversified engineering and construction group headquartered in Dubai, made its successful debut on the Dubai Financial Market (DFM) on October 15, 2025. This landmark listing represents the United Arab Emirates' largest-ever initial public offering (IPO) in the construction sector, both by valuation and size, and is the first such listing in the sector in over 15 years.
The IPO saw 1 billion existing ordinary shares offered for sale, constituting 20 percent of the company's issued share capital. The shares were priced at AED 1.40 each, reaching the top end of the announced price range. This pricing resulted in a total of AED 1.4 billion (USD 381 million) being raised through the offering, with an implied market capitalization of AED 7 billion (USD 1.91 billion) at the time of listing.
Strong Investor Demand and Oversubscription
The ALEC Holdings IPO garnered significant investor interest, with total subscriptions reaching approximately AED 30 billion (USD 8.1 billion). This overwhelming demand led to an oversubscription level of more than 21 times across all tranches, underscoring strong confidence in the company and the region's construction sector. Notably, the offering also recorded one of the highest levels of non-UAE investor participation among recent government-related listings on the DFM, signaling a broadening investor base for Dubai's capital markets.
Barry Lewis, CEO of ALEC Holdings, marked the listing by ringing the market-opening bell at the DFM. He was joined by His Excellency Helal Al Marri, Chairman of the DFM Board of Directors, and Hamed Ali, CEO of DFM and Nasdaq Dubai. 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.'
Ownership Structure and Dividend Policy
The shares offered in the IPO were existing shares sold by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai. Following the listing, ICD retains an 80 percent stake in ALEC Holdings.
ALEC Holdings has also outlined a clear dividend policy. The company intends to distribute a cash dividend of AED 200 million in April 2026, followed by AED 500 million for the 2026 financial year, payable in October 2026 and April 2027. Thereafter, ALEC plans to pay semi-annual dividends in April and October, with a minimum payout ratio of 50 percent of net profit, subject to Board approval.
ALEC's Impact on the Region
ALEC Holdings is renowned for its involvement in large-scale, complex, and iconic projects across the UAE and Saudi Arabia. Its portfolio includes notable developments such as One Za'abeel, Dubai Hills Mall, and SeaWorld Abu Dhabi, showcasing its significant contribution to the region's infrastructure and skyline. The successful IPO underscores Dubai's strategic drive to diversify its capital markets and provides investors with exposure to a key player in the thriving construction sector.
8 Comments
Loubianka
Existing shares only. No new capital for ALEC's future expansion, just a payout for ICD.
Katchuka
ALEC's outlined dividend policy offers attractive returns for shareholders, which is a positive draw. Yet, maintaining such high payouts will require consistent, strong performance in a highly cyclical construction market.
KittyKat
Historic moment for the region. Diversifying capital markets is crucial.
Donatello
The IPO's success clearly demonstrates robust investor appetite for Dubai assets. However, the significant government retention of 80% might temper enthusiasm for those seeking pure private sector exposure.
Raphael
This landmark listing undeniably boosts Dubai's financial market diversity and global appeal. Nevertheless, the fact that it's primarily existing shares being sold means it's more about liquidity for ICD than direct capital injection for ALEC's operational growth.
dedus mopedus
While the overwhelming 21x oversubscription reflects strong market demand, it also suggests the initial pricing might have been overly conservative. This could mean less value captured by the selling entity.
lettlelenok
80% government ownership? Not truly independent. Raises red flags.
KittyKat
Are we seeing a construction bubble? Too many IPOs in one sector.