Dubai: ALEC Holdings, a diversified engineering and construction group, today announced the price range for its initial public offering (IPO) and the commencement of the subscription period for its listing on the Dubai Financial Market (DFM). The price range has been established between AED1.35 and AED1.40 per share, indicating a market capitalization at listing between AED6.75 billion and AED7 billion.
According to Emirates News Agency, ALEC Holdings is offering a total of 1,000,000,000 ordinary shares, which represent 20 percent of the company's share capital. This positions the total offering size between AED1.35 billion and AED1.40 billion. All shares in the offering are existing shares, with the Investment Corporation of Dubai (ICD) selling 20 percent of its stake. Consequently, ALEC will not receive any proceeds from the offering.
Following the offering, unless the offering size is adjusted, the selling shareholder will retain an 80 percent stake in the company. ICD retains the right to amend the offering size at any time before the subscription period concludes, subject to UAE law and approval from the Securities and Commodities Authority.
According to the dividend policy detailed in the UAE prospectus and the international offering memorandum, ALEC anticipates distributing a cash dividend of AED200 million in April 2026, and AED500 million for the financial year ending 31st December 2026, to be paid in two instalments in October 2026 and April 2027. Based on the announced AED500 million dividend, the implied dividend yield from the offering price range would be approximately 7.1 percent at the upper end and around 7.4 percent at the lower end.
Subsequently, ALEC intends to implement a semi-annual dividend policy, with payments in April and October of each year, maintaining a payout ratio of no less than 50 percent of net profits for the relevant period, pending board approval and the availability of distributable reserves.
Ten percent of the total offer shares will be allocated equally to the Emirates Investment Authority and the Pensions and Social Security Fund for Local Military Personnel in Dubai. Should either entity opt not to exercise its preferential right to subscribe, the shares will be made available to other professional investors.
The subscription period opens today and will continue until 30th September 2025 for all investor tranches. The final offer price will be determined through a bookbuilding process, with an announcement expected on 1st October 2025. Subject to market conditions and regulatory approvals in the UAE, including DFM listing and trading approval, the listing and start of trading are projected for 15th October 2025.
In connection with the offering, the selling shareholder has appointed xCube LLC as the price stabilization manager. In accordance with applicable laws and regulations, the company may conduct price stabilization transactions on up to 100,000,000 shares.