ALEC Holding, one of the UAE’s most prominent construction and engineering firms, has officially announced the price range for its highly anticipated Initial Public Offering on the Dubai Financial Market. The company will offer 1 billion shares, representing 20 percent of its total capital, at a price between AED 1.35 and AED 1.40 per share.
This IPO represents a significant milestone for ALEC Holding, opening the doors for public investors to participate in the growth of a company that has been integral to the UAE’s infrastructure and urban development for over two decades. With a reputation for executing complex, high-value projects, ALEC Holding’s entry into the stock market is set to attract attention from both local and international investors seeking exposure to one of the region’s leading construction firms.
About ALEC Holding
Founded in 1999, ALEC Holding, formally known as Al Jaber LEGT Engineering and Contracting, has become a household name in the UAE’s construction and engineering sectors. Over the years, ALEC Holding has built an extensive portfolio of projects spanning luxury hotels, shopping malls, airports, government buildings, and large-scale infrastructure initiatives.
The company’s growth is closely tied to the UAE’s development trajectory. By delivering high-quality, timely, and innovative construction projects, ALEC Holding has established itself as a trusted partner for both public and private sector clients. Its projects are widely recognized for their quality, scale, and contribution to the country’s urban transformation.
ALEC Holding operates under the Investment Corporation of Dubai, the principal investment arm of the Dubai government, which has helped the company secure high-profile contracts and maintain strong financial backing. This association enhances investor confidence as ALEC Holding moves toward public listing, ensuring that shareholders are investing in a company with both a strong legacy and government support.
Details of the IPO
ALEC Holding’s IPO has been set at a price range of AED 1.35 to AED 1.40 per share. This offering represents 20 percent of the company’s share capital, with a total of 1 billion shares available for public subscription. Depending on the final pricing, the IPO size is expected to raise between AED 1.35 billion and AED 1.40 billion.
It is important to note that all shares on offer are existing shares sold by the Investment Corporation of Dubai. ALEC Holding itself will not receive any funds from this offering. This strategy allows the government to partially divest its stake while enabling broader public participation in one of the UAE’s largest construction and engineering companies.
The IPO is designed to attract a wide range of investors, from institutional players to retail investors, providing a rare opportunity to invest in a company with a strong reputation, long-term growth prospects, and involvement in essential infrastructure projects.
Subscription Timeline and Listing
The IPO subscription process for ALEC Holding will follow a clear timeline to ensure transparency and accessibility for investors
- Subscription Period September 23 to 30, 2025
- Final Offer Price Announcement October 1, 2025
- Expected Listing on the Dubai Financial Market October 15, 2025
Investors interested in subscribing to ALEC Holding shares can do so through authorized banks and financial institutions across the UAE. The company has ensured that the subscription process is straightforward, allowing both individual and institutional investors to participate easily.
This structured timeline ensures that the market has sufficient time to assess the IPO, review the investment opportunity, and make informed decisions before the company officially begins trading on the Dubai Financial Market.
Dividend Policy and Investor Benefits
One of the key attractions of ALEC Holding’s IPO is its dividend policy, which has been designed to reward shareholders with stable returns. The company has announced a cash dividend of AED 500 million for the financial year ending December 31, 2026. The first dividend payment is expected in October 2026, with a second payment scheduled for April 2027.
Based on the IPO price range, this policy implies a dividend yield of approximately 7.1 to 7.4 percent, making the company an attractive option for income-focused investors. ALEC Holding plans to maintain a semi-annual dividend distribution schedule, with a minimum payout ratio of 50 percent of net profits, subject to board approval and available reserves.
This approach reflects the company’s commitment to providing value to its shareholders while maintaining sufficient funds to support ongoing projects and future growth initiatives.
Why Investors Should Consider ALEC Holding
There are several reasons why ALEC Holding’s IPO is expected to attract strong investor interest
- Proven Track Record ALEC Holding has consistently executed large-scale and complex construction projects across the UAE and the Gulf region, building a reputation for reliability and quality.
- Strong Market Position As one of the leading construction firms in the UAE, ALEC Holding benefits from both private and government contracts, ensuring a steady pipeline of projects.
- Supportive Economic Environment The UAE’s continued focus on infrastructure, tourism, and urban development provides a conducive environment for construction companies like ALEC Holding.
- Attractive Dividend Policy With a high dividend yield and semi-annual payouts, investors are positioned to benefit from both capital growth and income generation.
- Government Backing Operating under the Investment Corporation of Dubai adds credibility and stability, providing investors with confidence in the company’s long-term prospects.
Market Impact and Future Prospects
ALEC Holding’s IPO is expected to have a notable impact on the UAE stock market by increasing liquidity and attracting a diverse base of investors. The company’s public listing will provide greater visibility, potentially leading to higher investor interest in the construction and infrastructure sectors.
Looking ahead, ALEC Holding is well-positioned to capitalize on the UAE’s ambitious development plans, including major infrastructure projects, tourism expansion, and urban development initiatives. The company’s strategic focus on delivering high-quality projects, maintaining operational excellence, and leveraging government support is likely to sustain growth and profitability in the coming years.
Investors participating in the IPO can expect both capital appreciation and dividend income, making ALEC Holding a compelling investment opportunity. Additionally, the public listing will enable the company to strengthen its governance, transparency, and investor engagement practices, further enhancing shareholder confidence.
Considerations for Investors
While ALEC Holding presents an attractive investment case, potential investors should consider several factors before participating
- Market Volatility IPOs can experience price fluctuations in the early days of trading, and investors should be prepared for short-term volatility.
- Sector Risks The construction and infrastructure sector can be affected by economic cycles, regulatory changes, and project delays.
- Long-Term Perspective Investors should assess ALEC Holding’s growth potential over the long term, rather than focusing solely on immediate returns.
- Research and Due Diligence Understanding the company’s financial performance, project pipeline, and strategic initiatives is essential for making informed investment decisions.
By carefully evaluating these factors, investors can make well-informed decisions and optimize their participation in ALEC Holding’s IPO.
Conclusion
ALEC Holding’s Dubai IPO represents a strategic opportunity for investors to gain exposure to one of the UAE’s leading construction and engineering firms. With a share price range of AED 1.35 to AED 1.40, a strong dividend policy, and a track record of high-quality project execution, the IPO offers both growth potential and income generation.
As the subscription period approaches, investors are encouraged to review the offering details, assess market conditions, and make informed decisions to capitalize on this unique investment opportunity. ALEC Holding’s public listing is not just a financial event; it is a chance to participate in the growth story of one of the UAE’s most successful and influential construction companies.
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