The United Arab Emirates (UAE) continues its ambitious push to deepen capital markets, and one of the most anticipated listings of 2025 is the ALEC Holdings IPO. Backed by the Investment Corporation of Dubai (ICD), ALEC is a leading engineering and construction powerhouse with landmark projects across the UAE and Saudi Arabia.

This IPO is not only significant for investors seeking exposure to Dubai’s booming infrastructure and real estate sector, but also a milestone in the government’s broader plan to bring more state-owned companies to market.

Here’s a complete breakdown of everything you need to know from subscription dates and offer price to dividends and risks.

Key IPO Details

ALEC Holdings PJSC is offering investors a chance to participate in one of the largest UAE IPOs of the year.

• Company: ALEC Holdings PJSC

• Parent / Seller: Investment Corporation of Dubai (ICD)

• Stake Offered: 20% of share capital (1 billion shares)

• Offer Price Range: AED 1.35 – AED 1.40 per share

• Estimated Proceeds: AED 1.35 – 1.40 billion (USD 368 – 381 million)

• Valuation at IPO: AED 6.75 – 7.0 billion (USD 1.84 – 1.91 billion)

• Subscription Period: September 23 – 30, 2025

• Final Price Announcement: October 1, 2025

• Expected Listing Date: Around October 15, 2025 on Dubai Financial Market (DFM)

Important note: The IPO is a secondary sale, meaning the company itself will not receive proceeds. Instead, funds go to ICD as the selling shareholder.

Allocation Breakdown

To ensure broad investor participation, ALEC’s shares are allocated across three main tranches:

• Institutional & Professional Investors: 94% of offering

• Retail Investors (UAE NIN holders): 5% of offering

• Employees (ALEC & ICD staff): 1% of offering

In addition, two government funds are guaranteed allocations:

• Emirates Investment Authority (EIA): 5% of professional tranche

• Pensions & Social Security Fund for Military Personnel: 5% of professional tranche

If these entities do not take up their allocations, the shares revert to the institutional tranche.

This allocation structure reflects Dubai’s balance between encouraging retail participation and ensuring strong institutional backing.

Dividend Policy

One of the strongest attractions of the ALEC IPO is its dividend plan, which has been clearly laid out for the first two years:

• April 2026: AED 200 million cash dividend

• FY 2026: AED 500 million in dividends, split between October 2026 and April 2027

• From FY 2027 onward: Semi-annual dividends (April & October) with at least 50% of net profit distributed, subject to reserves and board approval.

This upfront dividend visibility is designed to reassure investors of steady returns, especially in the first year after listing.

Market Context & Strategic Significance

The ALEC IPO is happening at a time of unprecedented growth in Dubai’s real estate and infrastructure market.

• Construction Surge in UAE & Saudi Arabia: Mega-projects like Expo City, luxury developments, and Saudi giga-projects are driving record demand for contractors like ALEC.

• Dubai’s Market Deepening Strategy: The IPO is part of a broader government program to float 10+ state-owned companies on the Dubai Financial Market, increasing liquidity and boosting market capitalization.

• Attractive Sector Positioning: ALEC is one of the region’s most diversified contractors, with capabilities spanning engineering, project management, and fit-out solutions.

This combination of sector growth and government-led reform makes ALEC’s listing especially attractive to both local and global investors.

Why Investors Are Watching Closely

There are several reasons why the ALEC IPO has captured attention:

1. Dividend Assurance: Few IPOs announce clear payout schedules upfront; ALEC’s dividend roadmap is a strong confidence signal.

2. Government Backing: With ICD as the sole seller, investors gain indirect exposure to Dubai’s sovereign wealth structure.

3. Construction Pipeline: ALEC has a healthy backlog of contracts in both UAE and Saudi Arabia, ensuring future earnings visibility.

4. DFM Liquidity Boost: This IPO is expected to attract significant foreign institutional flows, increasing DFM’s profile globally.

Potential Risks

No IPO is without risks, and ALEC’s offering is no exception. Investors should be mindful of:

• Cyclicality in Construction: Earnings can fluctuate with real estate cycles and government spending.

• Geographic Concentration: Heavy reliance on UAE and Saudi Arabia leaves ALEC vulnerable to regional economic shifts.

• Secondary Offering Nature: Since proceeds go to ICD, ALEC itself does not receive capital to expand operations.

• Execution Risk: Delivering on large-scale projects carries inherent risks of delays, cost overruns, or margin pressure.

Being aware of these risks allows investors to weigh the strong upside potential against sector volatility.

How to Subscribe

Retail and institutional investors can participate in the IPO through authorized channels.

• Eligibility:

  • UAE retail investors with a valid National Investor Number (NIN)

  • Institutional and professional investors (local & international)

• Application Channels:

  • Major UAE banks (through IPO portals and branches)

  • Licensed brokers registered with the Dubai Financial Market

• Timeline Reminder:

  • Opens: September 23, 2025

  • Closes: September 30, 2025

  • Final Price Set: October 1, 2025

  • Trading Commences: Mid-October 2025

Investors should ensure funding is ready in linked bank accounts to avoid rejection of applications.

Conclusion

The ALEC Holdings IPO represents a landmark listing for Dubai’s capital markets. With a clear dividend policy, strong project pipeline, and backing from ICD, the company offers investors a unique combination of short-term yield and long-term growth exposure.

While sector risks exist particularly given construction’s cyclical nature the IPO is positioned to attract heavy demand from both retail and institutional investors.

For investors seeking exposure to the UAE’s construction boom, ALEC’s listing could be one of the most compelling opportunities of 2025.