Prominent Holding Company "Alec" Debuts on Dubai Financial Market

Dubai's stock market just witnessed its biggest construction sector IPO ever. ALEC Holding, a Dubai-based engineering and construction company, raised 1.4 billion dirhams ($381 million) through its public listing, marking the first construction company to go public in the UAE in over 15 years.

The numbers tell quite a story. Investors wanted this stock badly - subscription requests hit 30 billion dirhams, more than 21 times what the company was actually offering. The final share price landed at 1.40 dirhams, right at the top of the expected range, giving ALEC a market value of 7 billion dirhams ($1.91 billion).

Dubai Investment Corporation, the government's main investment arm, sold 20% of its stake while keeping 80% ownership. What makes this particularly interesting is how many international investors jumped in - one of the highest foreign participation rates for any recent government-linked company listing in Dubai.

**Strong market momentum behind the scenes**

This IPO comes at a time when Dubai's financial markets are on fire. The Dubai Financial Market's total value reached 995 billion dirhams by June 2025, with trading volumes up 77% year-on-year to 85 billion dirhams. Foreign investors are clearly paying attention - they made up 84% of the 53,000 new investors who joined the market in the first half of 2025.

For construction companies, this timing matters. The UAE's building sector has been busy with massive infrastructure projects, from Expo 2030 preparations to new residential developments. ALEC's successful listing could encourage other construction firms to consider going public.

**What investors can expect**

ALEC isn't just asking for money without giving back. The company plans to pay 200 million dirhams in cash dividends by April 2026, followed by 500 million dirhams for the 2026 financial year, split between October 2026 and April 2027. Based on these projections and the IPO price, investors are looking at a 7.1% dividend yield.

The company's shares started trading today under the symbol "ALEC." Barry Lewis, ALEC's CEO, rang the opening bell alongside Dubai Financial Market officials, marking what many see as a turning point for the emirate's capital markets.

This listing does more than just raise money for one company. It shows Dubai's strategy to diversify its financial markets beyond traditional sectors like banking and real estate. With institutional investors now making up 71% of all trading activity, the market is becoming more sophisticated and attracting serious money from abroad.

The construction sector's return to public markets after 15 years suggests confidence in the UAE's economic growth plans and infrastructure spending. For Dubai's goal of becoming a global financial hub, having homegrown companies from various sectors trading publicly strengthens that position considerably.