- Alec Holdings declared its final price range for its IPO, raising 1.4 billion
- The IPO was oversubscribed 21 times with total gross demand of AED 30 billion
- The expected final listing on DFM is on October 15th
Construction firm Alec Holdings raised AED 1.4 billion after the subscription period for all investor tranches closed on Tuesday, as per an official press announcement by the company.
The three tranches defined in the official prospectus were aimed at professional investors, financial institutions, family offices, HNWIs, government institutions, and other categories of investors—
Prior to the announcement, Alec Holdings was considering a range of AED 1.35-1.40 before finally pricing it at the upper end.
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Investment Corporation of Dubai, which was the sole stakeholder up to this point, sold 20% of the company’s equity through an offering of 1 billion shares.
The official statement by Alec Holdings said the IPO was oversubscribed 21 times with total gross demand of AED 30 billion ($8.1 billion), with expected market capitalization of the firm upon listing on the DFM (Dubai Financial Market) to be AED 7 billion ($1.91 billion).
“We are proud that ALEC’s IPO drew strong demand and significant interest from a diverse and high-quality investor base. This is a clear vote of confidence in ALEC’s distinct value proposition and disciplined operating model,” said CEO Barry Lewis.
As per the timeline given in the company’s documents, the final allocation will be done on October 7th, and the expected final listing on DFM on October 15th.
“From a business perspective, Alec Holdings is on strong footing – backed by sufficient capital, a 26-year track record, and compliance with ESG standards. Their core focus remains the UAE and Saudi Arabia, with immense potential particularly in Saudi where expansion is needed given their current 13% exposure,” said Siddhant Amar Karnad, a partner relations manager at XM Global.
“However, it’s important to note that IPO proceeds will not fuel growth but instead be directed to ICD. That said, their strong dividend payout makes 2026 especially rewarding for shareholders. Personally, I see this as an attractive investment opportunity,” he also said.
Alec’s IPO marks the first significant market debut by a construction firm in Dubai since Arabtec’s bankruptcy in 2022, which had listed on the DFM in 2006.
