ALEC Holdings, a leading diversified engineering and construction group based in Dubai, has officially launched its initial public offering (IPO) on the Dubai Financial Market (DFM). The company has set the offer price range for its shares between AED 1.35 and AED 1.40, with the market capitalisation at listing expected to range from AED 6.75 billion (US$ 1.84 billion) to AED 7 billion (US$ 1.91 billion).

ALEC is offering a total of one billion shares, equivalent to 20% of its share capital, in this public offering. The total size of the IPO is estimated between AED 1.35 billion (US$ 368 million) and AED 1.40 billion (US$ 381 million). The shares being offered are existing shares held by the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai. ICD will retain an 80% stake in ALEC after the offering.

The subscription period for the IPO opens today and runs until 30 September 2025. The final offer price will be determined through a book-building process, with the results expected to be announced by 1 October 2025. The IPO’s completion and the admission of shares to the DFM are currently slated for 15 October 2025, pending regulatory approvals.

The offering includes a portion reserved for retail investors, another for institutional investors, and a third for eligible employees of ALEC and ICD. Additionally, 10% of the shares in the institutional tranche are reserved for the Emirates Investment Authority (EIA) and the Pensions Social Security Fund of Local Military Personnel, with each fund allocated 5%. If they do not exercise their preferential rights, these shares will be available to other institutional investors.

The IPO also includes a lock-up period for both ALEC and ICD, lasting 180 days following the shares' admission to the market. The company has appointed xCube LLC to potentially stabilise the market price of the shares.

Shariah compliance for the offering has been confirmed by Emirates NBD’s internal Shariah Supervision Committee.

The IPO is being managed by a consortium of financial institutions, with Emirates NBD Capital and J.P. Morgan Securities serving as joint global coordinators and bookrunners. Other key participants include Abu Dhabi Commercial Bank, EFG-Hermes, and Moelis & Company.

Photo credits: Government of Dubai Media Office

Oksana Bozhko

Oksana Bozhko is a Contributor to Dubai Voice.