Dubai - Mubasher: The Dubai Financial Market (DFM) welcomed the listing of ALEC Holdings, marking the UAE’s largest-ever initial public offering (IPO) in the construction sector, by both valuation and size.

Being the first in the sector in over 15 years, the debut reflects Dubai’s position as a leading global investment hub and the Emirate’s strategic drive to diversify its capital markets across priority sectors, according to a press release.

It follows the completion of a fully subscribed IPO, which raised AED 1.40 billion ($381 million) through the sale of 1 billion existing ordinary shares by the selling shareholder, the Investment Corporation of Dubai (ICD).

The offering represented 20% of the company’s issued share capital. Following the listing, ICD will retain an 80% stake in the company.

The IPO was priced at AED 1.40 per share, at the top end of the announced price range, implying a market cap of AED 7 billion ($1.91 billion) at listing.

It attracted strong demand from a diverse base of regional and international investors, generating total subscriptions of approximately AED 30 billion ($8.10 billion) and an oversubscription level of more than 21 times across all tranches.  

Barry Lewis, CEO of ALEC Holdings, said: “Our listing on the Dubai Financial Market reflects over two decades of steady growth, operational excellence, and a steadfast commitment to delivering complex, high-quality projects that define skylines and advance transformational national ambitions across the UAE and Saudi Arabia.”

Helal Al Marri, Chairman of the DFM, commented: “Each new listing reinforces Dubai’s position as a trusted and dynamic financial centre connecting regional enterprises with global capital.”

Hamed Ali, CEO of DFM and Nasdaq Dubai, added: “As we enhance market infrastructure and broaden access to investment opportunities, we remain committed to supporting issuers and investors through an open, transparent, and globally connected marketplace.”

In line with its dividend policy, ALEC plans to distribute a cash dividend of AED 200 million in April 2026, followed by AED 500 million for the 2026 financial year, payable in October 2026 and April 2027.

Thereafter, the company intends to pay dividends twice a year, in April and October, with a minimum payout ratio of 50% of net profit, subject to the board’s approval.