Alec Holdings gains 0.71% on DFM debut in UAE’s largest-ever construction sector IPO

Vijay Valecha, October 15, 2025, Khaleej Times

Alec Holdings gained 0.71 per cent over its listing price on its debut at the Dubai Financial Market on Wednesday.

Opening at Dh1.47, the Dubai-headquartered diversified engineering and construction group rose to Dh1.50 before declining. A total of 128,440,553 shares were traded during the day, at a value of Dh186,408,079.82.

These modest first-day gains contrast with recent IPOs like Parkin (+31 per cent) and Dubai Taxi (+19 per cent), "reflecting more disciplined pricing and a cautious investor stance toward private-sector companies compared to sovereign-linked entities", Vijay Valecha, Chief Investment Officer, Century Financial, told Khaleej Times.

The listing marks the UAE’s largest-ever initial public offering (IPO) in the construction sector, by both valuation and size, and the first in the sector in over 15 years. It underscores Dubai’s position as a leading global investment hub and the Emirate’s strategic drive to diversify its capital markets across priority sectors.

The company’s successful debut on the DFM follows the completion of a fully subscribed initial public offering (IPO), which raised Dh1.4 billion through the sale of 1 billion existing ordinary shares by the Selling Shareholder, the Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai. The offering represented 20 per cent of the company’s issued share capital. Following the listing, the Investment Corporation of Dubai (ICD), Alec’s sole selling shareholder, retains an 80 per cent stake in the company.

To mark the listing, Barry Lewis, Chief Executive Officer of Alec Holdings, rang the market-opening bell at DFM in the presence of   Helal Al Marri, Chairman of the DFM Board of Directors, and Hamed Ali, Chief Executive Officer of DFM and Nasdaq Dubai.

In line with its dividend policy, Alec intends to distribute a cash dividend of Dh200 million in April 2026, followed by Dh500 million for the 2026 financial year, payable in October 2026 and April 2027. Based on the 2026 dividend and final offer price of Dh1.40 per share, this represents a dividend yield of 7.1 percent at listing. Thereafter, the Company intends to pay dividends twice a year, in April and October, with a minimum payout ratio of 50 percent of net profit, subject to Board approval.

The company’s shares began trading on Wednesday under the ticker symbol “Alec” and ISIN “AEE01710A255,” The listing comes amid a period of strong performance for Dubai’s capital markets. As of June 2025, total market capitalisation on DFM reached Dh995 billion, supported by higher trading activity and growing institutional participation.

Total traded value increased 77 per cent year-on-year to Dh85 billion, with institutional investors accounting for 71 per cent of activity. DFM also added more than 53,000 new investors in the first half of 2025, 84 percent of whom were foreign, highlighting the exchange’s expanding global investor base and continued confidence in Dubai’s economic prospects.

Compared to other 2025 IPOs, Alec’s performance shows that strong subscription does not always lead to large post-listing rallies, analysts say. While Dubai Residential REIT (+13.6%) and Alpha Data (+6.7%) experienced sharper early gains, Alec’s steady trading range suggests healthy consolidation driven by solid fundamentals. "Investors are focusing more on earnings visibility, order backlogs, and dividend policies rather than chasing short-term speculative gains," Valecha said.

Strategically, Alec’s IPO carries significant weight in the sector. As a flagship contractor with sovereign support, its listing paves the way for other engineering and infrastructure firms considering going public. "This transaction demonstrates the UAE’s maturing equity capital markets, where book-building and fair pricing foster long-term investor confidence," Valecha said.

Looking ahead, equity capital market activity is expected to continue into the first half of 2026, with potential listings across renewables, utilities, logistics, technology, real estate, and healthcare. "Supported by ample liquidity, structural reforms, and diversification efforts, Alec’s debut signals deeper market development and a positive outlook for future construction-sector floatations in the UAE,"   Valecha said.

Source

Khaleej Times