Dubai: ALEC Holdings has declared its plan to offer 20 percent of its share capital on the Dubai Financial Market (DFM) through an Initial Public Offering (IPO). This strategic move allows the Investment Corporation of Dubai (ICD), currently the sole shareholder, to adjust the size of the offering at its discretion during the subscription period, adhering to applicable laws and regulations set by the Securities and Commodities Authority (SCA).
According to Emirates News Agency, ALEC Holdings is recognized as a leading engineering and construction group specializing in large-scale, complex projects in the UAE and Saudi Arabia. The IPO involves 1,000,000,000 ordinary shares, with the subscription period running from 23rd to 30th September 2025. The shares are expected to trade on the DFM around 15th October 2025.
The offering comprises three tranches: the First Tranche for individual subscribers, the Second Tranche for professional investors outside the United States, and the Third Tranche for ALEC and ICD eligible employees. The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has affirmed the IPO's compliance with Shariah principles.
ALEC Holdings has consistently maintained operational excellence and financial stability, achieving uninterrupted profitability for 18 years despite various challenges. The company is known for delivering transformative projects such as One Za'abeel in Dubai, SeaWorld Abu Dhabi, and Dubai Hills Mall. As of 30th June 2025, ALEC's project backlog stands at AED35.4 billion.
The company plans to distribute cash dividends of AED200 million in April 2026 and AED500 million for the financial year ending 31st December 2026. Future dividends are expected on a semi-annual basis, with a minimum payout ratio of 50 percent of net profit, pending board approval and availability of reserves.
Hussain Nasser Lootah, Chairman of ALEC Holdings, highlighted the IPO as a pivotal step in the company's growth, emphasizing its commitment to governance and sustainable returns. Barry Lewis, CEO of ALEC Holdings, remarked on the company's robust reputation and the promising opportunities in the UAE and Saudi Arabia markets.
The IPO allocates 5 percent of shares to the First Tranche, guaranteeing a minimum allocation of 2,000 shares to each successful subscriber, subject to conditions. The Second Tranche, comprising 94 percent of shares, targets professional investors, while the Third Tranche, with 1 percent of shares, is reserved for eligible employees.
ALEC's revenue surged from AED3.6 billion in FY 2022 to AED8.1 billion in FY 2024, with a 56 percent year-on-year growth in H1 2025. EBITDA also increased from AED259 million in FY 2022 to AED646 million in FY 2024, with net income reaching AED363 million in FY 2024.