AlEC Holdings announces offer price range and start of subscription period for its initial public offering

ALEC Holdings PJSC (under conversion in Dubai, UAE) (“ALEC” or the “Company”), a market-leading diversified engineering and construction group, today announces the offer price range per share (“Price Range”) and the start of the subscription period for its initial public offering (“IPO or the “Offering”) on the Dubai Financial Market (“DFM”).

Details of the Offering Price Range
The price range for the Offering has been set at between AED 1.35 and AED 1.40 per share, implying a market capitalisation at listing of between AED 6.75 billion (US$ 1.84 billion) and AED 7 billion (US$ 1.91 billion).

A total of 1,000,000,000 (one billion) Offer Shares, equivalent to 20% of ALEC’s share capital, will be offered, resulting in a total Offering size of between AED 1.35 billion (US$ 368 million) and AED 1.40 billion (US$ 381 million).

All of the Offer Shares are existing shares, with ICD, the principal investment arm of the Government of Dubai, selling 20% of its ownership in the Company. ALEC will not receive any proceeds from the Offering. Following the Offering, and subject to the size of the Offering not being increased, the Selling Shareholder will continue to hold a stake of 80% in the Company. ICD reserves the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to the applicable laws and the approval of the SCA.

Based on the announced dividend policy, which is available in the UAE Prospectus and the International Offering Memorandum, ALEC is expected to distribute a cash dividend of AED 200 million in April 2026, and a cash dividend of AED 500 million with respect to the financial year ending 31 December 2026, with the first payment being made in October 2026 and the second payment made in April 2027. Based on the financial year dividend of AED 500 million, the offer price range implies a dividend yield from c. 7.1% at the high end of the Price Range to c. 7.4% at the low end of the Price Range. Thereafter, the Company expects to distribute cash dividends on a semi-annual basis (in April and October of each year), with a minimum payout ratio of 50% of the net profit generated for the relevant financial period, subject to the approval of the Board of Directors and the availability of distributable reserves.

Subscription Process
As previously announced, the Offering consists of three tranches:
i. Individual Subscribers Offering (First Tranche), 5% of the Offer Shares, which is directed at retail investors and eligible entities holding a National Investor Number (NIN) with the DFM (“Individual Subscribers”);
ii. Professional Investors Offering (Second Tranche), 94% of the Offer Shares, which is directed at qualified institutional investors outside the United States under Regulation S, subject to applicable UAE laws and SCA approval (“Professional Investors”); and
iii. Eligible ALEC and ICD Employees Offering (Third Tranche), 1% of the Offer Shares, which is directed at eligible employees of ALEC and eligible employees of ICD (“Eligible ALEC and ICD Employees”).

Further, a number of ordinary shares, representing 10% of all Offer Shares (deducted from the total size of the Second Tranche), are reserved for Emirates Investment Authority (“EIA”) and the Pensions Social Security Fund of Local Military Personnel (“Fund”), 5% each. If the EIA and the Fund do not exercise their preferential rights to apply for Offer Shares, then those Offer Shares will be available to other Professional Investors.

The IPO subscription period starts today and runs until 30 September 2025 for all tranches. The final offer price will be determined through a book-building process and is expected to be announced on 1 October 2025.

The completion of the Offering and Admission are currently expected to take place on 15 October 2025, subject to market conditions and obtaining relevant regulatory approvals in the UAE, including approval of Admission to listing and trading on the DFM.

Pursuant to an underwriting agreement entered into between the Company, the Selling Shareholder, and the Joint Bookrunners on the date hereof (“Underwriting Agreement”), the remaining ordinary shares held by the Selling Shareholder following Admission shall be subject to a lock-up which starts on the date of Admission and ends 180 days thereafter, subject to certain permitted transfers as set out in the Underwriting Agreement. The Company will also be subject to a 180-day lock-up period following the date of Admission pursuant to the terms of the Underwriting Agreement.

Details of the Offering are available in the UAE Prospectus with respect to the First Tranche and Third Tranche and the English-language International Offering Memorandum with respect to the Second Tranche. The UAE Prospectus and the International Offering Memorandum are available at www.alec.ae/ipo.

Price Stabilisation
In connection with the Offering, the Selling Shareholder has appointed xCube LLC who may, to the extent permitted by applicable law, regulations and rules, effect stabilisation transactions on up to 100,000,000 (one hundred million) Offer Shares (the “Stabilisation Shares”), with a view to supporting the market price of the Stabilisation Shares at a higher level than that which might otherwise prevail in the open market.

Shariah Compliance
The Internal Shariah Supervision Committee of Emirates NBD has issued a pronouncement confirming that, in their view, the Offering is compliant with Shariah principles.

Emirates NBD Capital PSC (“Emirates NBD Capital”) and J.P. Morgan Securities PLC (“J.P. Morgan”) have been appointed as joint global coordinators and joint bookrunners (the “Joint Global Coordinators”), and Abu Dhabi Commercial Bank PJSC (“ADCB”) and EFG-Hermes UAE Limited (“EFG Ltd.”) acting in conjunction with EFG Hermes UAE LLC (“EFG LLC” and together with EFG Ltd., “EFG-Hermes”) have been appointed as joint bookrunners (together with the Joint Global Coordinators, the “Joint Bookrunners”). Moelis & Company UK LLP DIFC Branch has been appointed as independent financial adviser (the “Independent Financial Adviser”).

Emirates NBD Bank PJSC has been appointed as the Lead Receiving Bank. Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Al Maryah Community Bank, Commercial Bank of Dubai PJSC, Dubai Islamic Bank PJSC, Emirates Islamic Bank PJSC, First Abu Dhabi Bank PJSC, Mashreq Bank PJSC and Wio Bank PJSC have also been appointed as Receiving Banks. Emirates NBD Bank PJSC’s IPO call centre can be reached at 800 ENBD IPO (800 3623 476).