ALEC Holdings Announces Intention to Float on the Dubai Financial Market
Offering made to Individual Subscribers (First Tranche), Professional Investors (Second Tranche) and Eligible ALEC and ICD Employees (Third Tranche)
ALEC Holdings PJSC (under conversion in Dubai, UAE) today announces its intention to list 20% of its share capital on the Dubai Financial Market (“DFM”) through an Initial Public Offering (“IPO” or the “Offering”), with the Investment Corporation of Dubai (the “Selling Shareholder” or “ICD”) retaining the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities and Commodities Authority (“SCA”).
ALEC Holdings (and together with its subsidiaries, “ALEC” or the “Company”) is a market-leading diversified engineering and construction group with operations focused on large-scale, complex and iconic buildings and energy projects in the United Arab Emirates (“UAE”) and the Kingdom of Saudi Arabia (“KSA”).
Summary of the Offering
> ICD, the principal investment arm of the Government of Dubai, is currently the sole shareholder of ALEC and is offering 1,000,000,000 (one billion) ordinary shares (“Shares”) through the Offering.
>The Offering subscription period is expected to run from 23 September 2025 to 30 September 2025 (both days included).
> The Offering will be made available to (i) Individual Subscribers (as defined below), as part of the First Tranche, (ii) Professional Investors outside the United States (as defined below), as part of the Second Tranche, and (iii) ALEC Eligible Employees and ICD Eligible Employees (together “Eligible Employees”), as part of the Third Tranche.
> Admission of Shares for trading on the DFM (“Admission”) is anticipated on or around 15 October 2025.
> The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles.
Summary of ALEC’s Investment Highlights
> Longstanding track record of financial and commercial success. Sustained operational excellence and strong financial management discipline have allowed ALEC to deliver uninterrupted profitability for the past 18 years, successfully navigating macroeconomic and geopolitical disruptions without compromising financial stability. As of June 2025, ALEC ranks among the UAE’s leading construction players by value of work under execution, reinforcing its scale, credibility, and long-term relevance in the region.
> Operational excellence and risk management drive a sustainable edge. ALEC’s operational excellence, disciplined risk management, integrated capabilities, innovative methodologies, progressive use of technology, and people-first culture have driven its long-term success and given it a competitive advantage to deliver complex projects.
> Unparalleled capabilities to deliver large-scale, complex and iconic projects. With a reputation as the contractor of choice for large, iconic and technically complex projects, ALEC delivers transformative developments across the UAE and KSA. Examples include One Za’abeel, a mixed-use development with the world’s longest cantilever, SeaWorld Abu Dhabi, the world’s largest indoor marine theme park, and Dubai Hills Mall, for which ALEC was awarded “Retail Project of the Year 2022”.
> Strongly positioned to capture significant growth in the UAE and KSA. ALEC is set to benefit from the significant expansion of construction and infrastructure activity in both the UAE and KSA, especially in segments where ALEC has strong expertise including hospitality, airports and data centres. According to the industry consultant MEED, total project spend in the UAE is expected to increase 76% to AED 304 billion by 2033 compared to AED 173 billion in 2024. In KSA, total project spend is forecast to more than double to AED 410 billion by 2033 compared to AED 193 billion in 2024.
> Large and secured backlog set to drive visible growth. ALEC maintains a strong pipeline of large-scale projects, reflected in its AED 35.4 billion backlog as at 30 June 2025, with 79% of the current backlog secured in the last two years, highlighting ALEC’s momentum and success in the marketplace. This robust backlog provides multi-year visibility on earnings and cash flow generation.
> Robust financial profile and significant acceleration in revenue and profits. ALEC has consistently delivered profitable and cash-generative growth, underpinned by disciplined execution, efficient capital deployment, a robust risk management framework, and a balanced project portfolio. This growth has accelerated in recent years, reflecting ALEC’s success in securing new projects and the strong demand from clients for highly-skilled contractors. ALEC is intending to distribute cash dividends through a clear dividend policy, reflecting its confidence in its cash flow strength and long-term earnings potential, while preserving flexibility for growth investments.
> Experienced and performance-focused management team supported by an accomplished Board of Directors and shareholder. ALEC is led by a high-calibre management team with deep sector experience and a long track record of successful project delivery, supported by a strategic and independent Board of Directors and a strong institutional shareholder, ICD, the principal investment arm of the Government of Dubai.
Summary of the Dividend Policy
> ALEC intends to distribute a cash dividend of AED 200 million, payable in April 2026, and a cash dividend of AED 500 million for the financial year ending 31 December 2026, payable in October 2026 and April 2027.
> Thereafter, the Company expects to distribute cash dividends on a semi-annual basis (in April and October of each year), with a minimum payout ratio of 50% of the net profit generated for the relevant financial period, subject to the approval of the Board of Directors and the availability of distributable reserves.
> ALEC continues to evaluate accretive investment opportunities for growth. In the absence of suitable opportunities that meet the target investment criteria and returns, the Company will consider distributing higher dividends than the minimum annual dividend.
Commenting on the launch of the IPO, H.E. Hussain Nasser Lootah, Chairman of ALEC Holdings, said:
"This IPO is a natural next step in ALEC’s journey. Over the past two and a half decades, we have built a strong reputation as a trusted regional leader, delivering some of the most complex and iconic projects in the UAE and the GCC. Today, we stand as a diversified, award-winning construction group with a record backlog, a strong client base, and a proven track record of profitable growth. We enter the public markets from a position of strength, supported by a buoyant regional construction sector underpinned by ambitious national agendas in our home market and in Saudi Arabia, and a favourable economic environment. As we become a publicly listed company, we are committed to rigorous governance, sustainable returns, and leading with integrity. On behalf of the Board, I look forward to welcoming our new shareholders as we shape ALEC’s future and unlock shared long-term growth.”
Barry Lewis, Chief Executive Officer of ALEC Holdings, said: “The IPO of ALEC underscores the trust and reputation we’ve earned across our 26-year journey, the sustained financial growth we’ve delivered, and the exciting opportunities before us in two of the world’s most dynamic construction markets: the UAE and KSA. We have executed and are currently working on some of the most complex and iconic projects across the UAE and in the Kingdom. Blue-chip clients choose ALEC for our specialised solutions, integrated offerings, disciplined approach, and strong execution capabilities – setting us apart from other contractors. In 2022, we witnessed a step-change in our business operations and performance, underpinned by two strategic milestones: the acquisition of Target Engineering, which expanded our presence into the critical energy segment, and our entry into KSA with a landmark win at Qiddiya. These achievements enabled us to diversify and scale both our business portfolio and geographic footprint, while remaining true to our long-standing values of financial prudence and risk discipline – the core tenets of our profitable growth."
"Looking ahead, our strategy is clear and focused: expand our UAE leadership through ALEC’s reputation, partnerships, and integrated capabilities, and target high-profile Saudi giga-projects that match our expertise. We’re equally bullish on data centres. With the first phase of Stargate UAE secured, we’re set to deliver hyperscale, AI-optimised campuses across the region. As we scale, we’ll continue to prioritise high-margin, technically complex work with limited competition and strong pricing power. We’ll drive delivery excellence by investing in modern construction methods, including modular off-site manufacturing and parallel construction, to accelerate schedules, cut waste, and enhance sustainability. I’m confident that this listing will strengthen our governance, enhance transparency, and unlock new avenues for growth. We look forward to welcoming shareholders who share our vision, trust in our people, and have conviction in our potential.”
Details of the Offering
The Offering will include 1,000,000,000 (one billion) Shares (the “Offer Shares”), representing 20% of ALEC’s issued share capital. The Offering consists of three tranches: (i) the Individual Subscribers Offering (First Tranche), which targets retail investors and eligible entities holding a National Investor Number (NIN) with the DFM (“Individual Subscribers”); (ii) the Professional Investors Offering (Second Tranche), which is directed at qualified institutional investors outside the United States under Regulation S, subject to applicable UAE laws and SCA approval; and (iii) the Eligible Employees Offering (Third Tranche), which is directed at eligible employees of ALEC and eligible employees of ICD.
The First Tranche is allocated 5% of the Offer Shares, amounting to 50,000,000 (fifty million) Shares. Each successful subscriber in the First Tranche will be guaranteed a minimum allocation of 2,000 Shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus.
The Second Tranche is allocated 94% of the Offer Shares, amounting to 940,000,000 (nine hundred forty million) Shares, and is restricted to “Professional Investors” (as defined in the SCA Board of Directors’ Chairman Decision No.13/R.M of 2021 (as amended from time to time)).
The Third Tranche is allocated 1% of the Offer Shares, amounting to 10,000,000 (ten million) Shares. Each successful subscriber in the Third Tranche will be guaranteed a minimum allocation of 10,000 Shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus. If all of the Offer Shares in the Third Tranche are not fully subscribed for, the unsubscribed Offer Shares will be available to the First Tranche.
A number of Offer Shares, representing 10% of all Offer Shares (deducted from the total size of the Second Tranche), are reserved for Emirates Investment Authority (“EIA”) and the Pensions Social Security Fund of Local Military Personnel (“Fund”), 5% each. If the EIA and the Fund do not exercise their preferential rights to apply for Offer Shares, then those Offer Shares will be available to other Professional Investors.
ICD will retain 80% of ALEC’s issued share capital following the Offering, assuming all Shares being offered are sold and no changes are made to the Offering size.
The price of the Shares being offered will be determined through a book-building process conducted in consultation with the Joint Global Coordinators (as defined below), the Company and the Selling Shareholder.
The Shares are expected to be listed on the DFM under the ticker symbol “ALEC”, with trading anticipated to commence on or around 15 October 2025.
The Offering will allow the Selling Shareholder to sell part of its shareholding, while providing trading liquidity in the Shares and raising the Group’s profile with the investment community. The Selling Shareholder will receive all net proceeds from the Offering, and no transaction costs will be borne by ALEC.
Emirates NBD Capital PSC (“Emirates NBD Capital”) and J.P. Morgan Securities PLC (“J.P. Morgan”) have been appointed as joint global coordinators and joint bookrunners (the “Joint Global Coordinators”), and Abu Dhabi Commercial Bank PJSC (“ADCB”) and EFG-Hermes UAE Limited (“EFG Ltd.”) acting in conjunction with EFG Hermes UAE LLC (“EFG LLC” and together with EFG Ltd., “EFG-Hermes”) have been appointed as joint bookrunners (together with the Joint Global Coordinators, the “Joint Bookrunners”). Moelis & Company UK LLP DIFC Branch has been appointed as independent financial adviser (the “Independent Financial Adviser”). Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank, Commercial Bank of Dubai PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Mashreq Bank PJSC and Wio Bank PJSC have also been appointed as Receiving Banks. Emirates NBD Bank PJSC’s IPO call centre can be reached at 800 ENBD IPO (800 3623 476).
In connection with the Global Offering, the Company and the Selling Shareholder will appoint xCube LLC, a duly authorised price stabilisation manager by the DFM, to act as a price Stabilisation Manager, who may, to the extent permitted by applicable law, including the DFM Trading Rules, and for stabilisation purposes, effect stabilising transactions on the DFM. As part of the Global Offering, the Selling Shareholder will sell 100,000,000 (one hundred million) Shares (the “Stabilisation Shares”) and such shares will be allocated to investors as part of the normal allocation process for the Global Offering. If at any time during the Stabilisation Period the share price of the Shares on the DFM falls below the Offer Price, the Stabilisation Manager shall use the proceeds of the sale of the Stabilisation Shares to purchase from the market up to a number of Shares equivalent to the number of Stabilisation Shares at or below the Offer Price for the purpose of supporting the market price of the Shares. All stabilisation transactions will be undertaken in compliance with the DFM Trading Rules. In accordance with Rule 14.7 of the DFM Trading Rules, the Stabilisation Manager will disclose to the market the extent of any stabilisation transactions conducted in relation to the Offering.
Pursuant to an underwriting agreement to be entered into between the Company, the Selling Shareholder, and the Joint Bookrunners prior to the date of Admission (“Underwriting Agreement”), the Shares held by the Selling Shareholder following Admission shall be subject to a lock-up which starts on the date of Admission and ends 180 days thereafter, subject to certain permitted transfers as set out in the Underwriting Agreement. The Company is subject to a 180-day lock-up period following the date of Admission pursuant to the terms of the Underwriting Agreement.
The details of the Offering will be included in the Prospectus and public subscription announcement (the "Public Announcement"), and in an English-language international offering memorandum (the "International Offering Memorandum"). The Prospectus and the Public Announcement were published today, and the International Offering Memorandum is expected to be published on Tuesday, 23 September 2025. The Prospectus, Public Announcement and the International Offering Memorandum will be available at www.alec.ae/ipo.
The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles. Investors should undertake their own due diligence to ensure that the Offering is Shariah-compliant for their own purposes.
Comments