ALEC IPO Opens: 6 Key Reasons to Invest in Dubai’s Latest Listing
<p>Dubai’s stock market continues to attract global and regional attention with yet another major initial public offering (IPO). Following the blockbuster listings of <strong>Salik, Parkin, Dubai Taxi, and DEWA</strong>, the spotlight has now turned to <strong>ALEC Holdings</strong>, one of the UAE’s largest and most established construction firms.</p><p><strong>Subscriptions for ALEC’s IPO opened on September 23, 2025, and will remain open until September 30.</strong> Investors are weighing whether this opportunity could deliver long-term returns similar to past government-backed IPOs that saw strong oversubscription and significant price appreciation.</p><p>Here are six key reasons why ALEC’s IPO is generating buzz.</p><h3>1. A 26-Year Track Record in Landmark Projects</h3><p>Founded in Dubai more than two decades ago, <strong>ALEC has built a reputation for delivering some of the Middle East’s most complex engineering and construction projects.</strong> These include Expo 2020 pavilions, airport terminals, luxury hotels, and mega-developments such as <strong>One Za’abeel</strong>.</p><p>The company has expanded into <strong>nine integrated businesses</strong> spanning construction, modular buildings, energy, heavy equipment rentals, and data centres. With the <strong>Investment Corporation of Dubai (ICD)</strong> as its majority shareholder even after the IPO, ALEC carries strong government backing—something that historically reassures investors.</p><h3>2. Dh35.4 Billion Project Backlog</h3><p>One of ALEC’s biggest strengths is its <strong>backlog worth Dh35.4 billion</strong>, which provides predictable cash flows over the next several years.</p><p><strong>87% of these projects are in the UAE</strong>, including the <strong>Wynn Al Marjan resort</strong> and the <strong>Stargate Data Centre</strong>.</p><p><strong>13% are in Saudi Arabia</strong>, tied to giga-projects under <strong>Vision 2030</strong>, such as the Qiddiya Waterpark.</p><p>This level of diversification ensures revenue visibility at a time when both UAE and Saudi construction sectors are booming.</p><h3>3. Profits for 18 Consecutive Years</h3><p>ALEC has consistently reported profits for <strong>18 straight years</strong>. In 2024, the company generated <strong>Dh8.1 billion in annual revenue</strong>, with an <strong>EBITDA margin of 8%</strong> and a <strong>net income margin of 4%</strong>.</p><p>The strong performance has continued in 2025, with <strong>first-half revenues at Dh5.36 billion</strong> and slightly improved margins. The workforce has also expanded by <strong>46% in two years</strong>, employing more than <strong>40,000 people</strong>.</p><p>This financial discipline highlights ALEC’s ability to remain profitable even in a competitive and cyclical sector.</p><h3>4. Attractive Dividend Policy</h3><p>Retail investors often seek companies with steady dividends, and ALEC is offering just that:</p><p><strong>2025 payout</strong>: Dh200 million.</p><p><strong>2026 payout</strong>: Dh500 million (split between April and October).</p><p><strong>From 2027 onwards</strong>: At least <strong>50% of net profit</strong> will be distributed.</p><p>This dividend policy provides investors with recurring income in addition to potential capital gains from share price appreciation.</p><h3>5. Growing Focus on Data Centres</h3><p>The global demand for data centres is booming, projected to exceed <strong>$300 billion in market value</strong> in the coming years. ALEC is positioning itself to tap into this trend with <strong>high-margin projects</strong> such as the <strong>Dh5.3 billion Stargate Data Centre in Abu Dhabi</strong>.</p><p>CEO <strong>Barry Lewis</strong> emphasized that data centres represent an “exciting growth area” offering stronger returns than traditional construction sectors like hospitality or real estate.</p><h3>6. Expansion into Saudi Arabia</h3><p>Saudi Arabia’s <strong>Vision 2030 programme</strong> is driving unprecedented infrastructure investment, with a construction market estimated at <strong>Dh4.7 trillion</strong>, far larger than the UAE’s Dh2.8 trillion market.</p><p>ALEC is already executing projects in the kingdom and views Saudi Arabia as a <strong>“far bigger opportunity”</strong> in the long term, despite cost pressures in the sector. This expansion provides a growth runway beyond the UAE.</p><h3>IPO Details for Investors</h3><p><strong>Shares offered</strong>: 1 billion (20% of company).</p><p><strong>Price range</strong>: Dh1.35–Dh1.40 per share.</p><p><strong>Retail tranche</strong>: 5% of the offering, with guaranteed allocation of 2,000 shares per subscriber.</p><p><strong>Minimum subscription</strong>: Dh5,000 (increments of Dh1,000).</p><p><strong>Subscription period</strong>: September 23–30, 2025.</p><p><strong>Expected listing</strong>: October 15, 2025, on the DFM.</p><p><strong>Receiving banks</strong>: Emirates NBD, ADCB, ADIB, DIB, FAB, Mashreq, Wio, Emirates Islamic, and CBD.</p><h3>Risks to Consider</h3><p><strong>No new capital raised</strong>: Proceeds go to ICD, not ALEC.</p><p><strong>Sector volatility</strong>: Construction remains vulnerable to project delays, cost escalations, and cyclical downturns.</p><p><strong>Geographic concentration</strong>: Heavy reliance on UAE and Saudi projects.</p><p><strong>Oversubscription risk</strong>: Given strong past demand, retail applicants may receive fewer shares than requested.</p><h3>Should You Invest?</h3><p>With its strong financial record, government backing, and expansion into high-growth sectors like <strong>data centres and Saudi mega-projects</strong>, ALEC’s IPO presents a compelling opportunity. Its <strong>generous dividend policy</strong> further strengthens the case for long-term investors.</p><p>However, investors should weigh the construction sector’s risks and read the prospectus carefully. For many, ALEC could be a valuable addition to a diversified portfolio—particularly given the success of past Dubai government-backed IPOs.</p><p><strong>Bottom line:</strong> ALEC is more than just another IPO—it represents a rare chance for retail investors to buy into one of the UAE’s most prominent construction champions.</p>