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ALEC Holdings, a Dubai-based engineering and construction group, has set the final offer price for its initial public offering (IPO) at 1.40 dirhams ($0.38) per share, the top end of the announced price range.
The offering, which represents 20% of the company’s share capital, will raise AED 1.4 billion ($381 million), implying a market capitalisation of AED 7 billion ($1.91 billion) upon listing on the Dubai Financial Market.
The IPO attracted strong investor interest, with aggregate demand reaching approximately AED 30 billion, resulting in an oversubscription of more than 21 times across all tranches.
ALEC Holdings expects to distribute AED 200 million in dividends for FY2025 (payable in April 2026) and AED 500 million for FY2026 (payable in two tranches: October 2026 and April 2027). Based on the final offer price, this implies a dividend yield of 7.1% for FY2026.
The shares are expected to begin trading on or around 15 October.
(Writing by Brinda Darasha; editing by Bindu Rai)
