ALEC Holdings, a Dubai-based engineering and construction firm, said on Monday that it will sell 1 billion shares, representing a 20% stake, in an initial public offering, tapping into strong investor demand and a construction boom in the Gulf.
The deal could raise $400 million, two sources with knowledge of the matter told Reuters.
The subscription period will run during September 23-30, with the offer price announcement scheduled for October 1. Shares are expected to make their debut on the Dubai Financial Market on or around October 15, the company said.
ALEC Holdings, which is wholly owned by the Investment Corporation of Dubai (ICD), has operated in Saudi Arabia since 2020 and also maintains a strong presence in the United Arab Emirates. Following the IPO, the ICD will retain an 80% stake in the company.
ALEC intends to distribute a cash dividend of 500 million dirhams ($136.13 million) for the 2026 financial year and, from then on, aims to pay cash dividends on a semi-annual basis with a minimum payout ratio of 50% of net profit.
In a separate statement addressing questions about the IPO and its fundraising target, the company said it “does not comment on market rumours and speculation,” citing company policy.
The UAE’s IPO market has surged in recent years, underpinned by blockbuster listings from both state-backed entities and private firms, generating billions in new equity sales.
Following that wave of initial flotations, activity is now shifting toward follow-on offerings, as shareholders from sovereign wealth funds to family-owned businesses seek to reduce their stakes through public markets.
Meanwhile, Gulf contracting firms are benefiting from robust housing demand and a sharp increase in infrastructure spending, fuelled in part by Dubai’s resurgent real estate market.
Dubai, home to the world’s tallest skyscraper, has become one of the world’s fastest-growing cities, surpassing a population of 4 million in August, according to government estimates.
The DFM equity index has climbed more than 16% this year, among the best-performing benchmarks in the region and has outperformed the S&P 500 index.
Emirates NBD Capital and J.P. Morgan are acting as joint global coordinators and joint bookrunners for the IPO.
Reuters
