ALEC Holdings prices $381m Dubai IPO at top of range, raises Dhs1.4bn

Core Points - ALEC Holdings, a Dubai-based engineering and construction group, successfully priced its IPO at the top of the indicated range, raising Dhs1.4bn ($381m), marking the largest construction sector IPO in the UAE to date [2][3] - The IPO involved the sale of one billion shares at Dhs1.40 each, resulting in a market capitalization of Dhs7bn ($1.91bn) at listing [2] - The offering represented 20% of the company's share capital, with the Investment Corporation of Dubai (ICD) retaining an 80% stake [3] - The IPO attracted Dhs30bn ($8.1bn) in orders, indicating more than 21 times oversubscription, with significant interest from both local and international investors [3] - ALEC is set to begin trading on the Dubai Financial Market (DFM) on or around October 15 under the symbol "ALEC" [4] Dividend Plans - ALEC plans to distribute Dhs200m in dividends in April 2026 and Dhs500m for the 2026 financial year, which translates to a dividend yield of 7.1% at the IPO price [5] - Future dividend payments will follow a semi-annual schedule, subject to board approval and available reserves [5] Company Background - ALEC is the first construction company in the UAE to list in over 15 years, having delivered large-scale projects across the UAE and Saudi Arabia [6] - The company operates in engineering, construction, and project management sectors [6] Financial Advisors - Emirates NBD Capital and J.P. Morgan served as joint global coordinators and joint bookrunners for the IPO [7] - Abu Dhabi Commercial Bank and EFG Hermes were also joint bookrunners, while Moelis & Company UK LLP DIFC Branch acted as an independent financial adviser [7]