ALEC Holdings: Strong Growth and IPO Readiness

ALEC is preparing to launch its initial public offering (IPO), offering 20% of its share capital on the Dubai Financial Market (DFM). The subscription period will run from September 23 to 30, 2025, with shares expected to be listed under the ticker “ALEC” on October 15, 2025. ICD will retain an 80% stake following the IPO, assuming full subscription.

ALEC Holdings is a leading multidisciplinary engineering and construction company, established in 1999 and operating primarily in the UAE and Saudi Arabia.

In 2024, ALEC reported revenues of approximately AED 8.1 billion, up from AED 6.3 billion in 2023 – representing a strong year-over-year growth of nearly 28%.

The IPO aims to broaden investor participation, improve transparency, and provide flexible funding for future expansion. Listing also allows market-driven valuation and greater visibility for the company in the public domain.

One of ALEC's key strengths is its project backlog, which stood at AED 35.4 billion as of June 2025. This sizeable pipeline ensures revenue stability and provides clear visibility into future cash flows. The company also maintains a net cash position of AED 334 million, highlighting its robust liquidity and low financial risk.

ALEC has announced its intention to pay a cash dividend of AED 200 million in April 2026, followed by AED 500 million for the 2026 financial year, split across October 2026 and April 2027. Moving forward, the company plans to implement a semi-annual dividend policy, distributing at least 50% of annual net profits, subject to board approval and availability of distributable reserves.

ALEC continues to diversify geographically, particularly in Saudi Arabia, where it has secured major contracts like the Qiddiya Speedpark. Additionally, the company is investing in complementary services such as equipment rentals (AJI Rentals), modular construction, data centers, and MEP services. It is also embracing innovation through automation and sustainability, with a target to automate 5% of construction operations by 2030.

ALEC Holdings is entering the public markets from a position of strength. Its consistent revenue and profit growth, extensive project pipeline, and clear dividend policy make it a compelling opportunity for investors. While the IPO is yet to launch, the available data suggests ALEC meets the key criteria sought by long-term investors: profitability, diversification, financial health, and transparency.