Alec pulls the trigger on Dubai’s first corporate IPO of the year: Dubai-based engineering and construction group Alec Holdings is taking a 20% stake public on the DFM through a Reg S-compliant secondary offering of 1 bn shares, according to an ITF document (pdf) and its prospectus (pdf). Sovereign wealth fund Investment Corporation of Dubai (ICD) — the firm’s sole owner and selling shareholder — will rake in the proceeds from the IPO.

IN CONTEXT- The ICD was said to be preparing a USD 500 mn IPO for Alec as part of Dubai’s 10-company privatization drive. Alec is set to become the seventh state-owned firm to list under the program, following names like Parkin, Dewa, Dubai Taxi, Salik, Tecom, and Empower.

Alec is the first to IPO following a quiet 1H: We were expecting the second half of the year to bring more IPO activity, with several analysts saying companies are waiting until after the summer lull to kick off their listings. Developers including Binghatti and Arabian Construction, classifieds platform Dubizzle, and a Dubai Investments unit are also preparing floats, as the emirate’s IPO pipeline swells alongside its property boom. Dubai’s first and only IPO this year was Dubai Residential REIT’s May listing.

Who can buy in: Some 94% of the shares on offer will be limited to institutional investors, with 5% open to retail buyers. Emirates Investment Authority (EIA) and the Pensions Fund for Local Military Personnel have preferential rights to 10% of the offer shares (5% each) which will be carved out of the institutional tranche. The third tranche of the IPO (1%) will be reserved for ICD employees.

The timeline: Subscriptions will be open from 23-30 September, with the final pricing set to be announced on Wednesday, 1 October. Final allocations will take place on Tuesday, 7 October, with Alec’s shares due to start trading the following Wednesday 15 October under the ticker ALEC.

A sweetener for investors: Alec plans to pay AED 200 mn in dividends in April 2026, followed by AED 500 mn payable in October 2026 and April 2027. From 2027 onward, it is targeting a minimum 50% payout of net income on a semi-annual basis.

A glimpse into the company: Founded in 1999 and owned by ICD since 2017, Alec is one of Dubai’s largest contractors, with operations spanning construction, fit-out, and MEP services. Its project portfolio includes Expo 2020 pavilions, Dubai Hills Mall, along with other high-profile infrastructure and real estate developments across the UAE and wider region. The group’s bottomline grew 84.5% y-o-y to AED 239 mn in 1H 2025, while its top line rose 56% to AED 5.4 bn over the same period, backed by an AED 35.4 bn backlog.

ADVISORS- Our friends at EFG Hermes are acting as joint bookrunners on the transaction alongside Abu Dhabi Commercial Bank. They’re joined by Emirates NBD Capital and JP Morgan as joint global coordinators and bookrunners, while Moelis is acting as independent financial adviser. Gibson, Dunn & Crutcher, and Ibrahim & Patterns are providing counsel. Emirates NBD is the lead receiving bank, alongside ADCB, ADIB, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, Mashreq, and Wio Bank.

ALSO IN THE PIPELINE-

  • Emirates Global Aluminium (EGA) could be reviving plans for a potential IPO that could rank among the region’s largest;
  • ADQ-backed Etihad Airways highly-anticipated IPO was expected to kick offafter Eid Al Fitr but could be delayed to 2026 ;
  • Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero is gearing up for an IPO on the ADX;
  • Dubai Holding plans to float two of its property portfolio units, and Sharjah-born Aradais also eyeing an IPO in three years’ time;
  • Abu Dhabi Investment Group (ADIG) is eyeing listings for its financial unit and energy subsidiary this year;
  • Hospitality group Five Holdings also tapped advisors for a potential listing;
  • Amanat Holdings is planning to list its education and healthcare units;
  • Shisha producer Advanced Inhalation Ritual is also rumored to potentially IPO.
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