ALEC Holdings Announces IPO Details for Dubai Financial Market

ALEC Holdings has officially revealed the price range for its upcoming initial public offering (IPO) and the timeline for subscriptions on the Dubai Financial Market (DFM). This marks a significant step for the company as it prepares to enter the public market.

IPO Price Range and Market Capitalization

The IPO price has been set between AED 1.35 and AED 1.40, which translates to approximately $0.37 to $0.38 per share. This pricing indicates a market capitalization at the time of listing that will fall between AED 6.75 billion (around $1.84 billion) and AED 7 billion (approximately $1.91 billion).

ALEC Holdings plans to offer a total of 1 billion ordinary shares, which represents 20% of its total share capital. This means the overall offering size will range from AED 1.35 billion (about $367 million) to AED 1.40 billion (around $381 million).

Details of the Offering

All shares included in this offering are existing shares. The Investment Corporation of Dubai (ICD), which serves as the principal investment arm of the Dubai government, is divesting 20% of its stake in ALEC Holdings. Importantly, ALEC will not receive any proceeds from this offering. Once the IPO is complete, unless the offering size is adjusted, the ICD will retain an 80% ownership stake in the company.

ICD holds the discretion to modify the offering size before the subscription period concludes, in accordance with UAE law and the approval of the Securities and Commodities Authority.

Dividend Expectations

According to the dividend policy outlined in the UAE prospectus and the international offering memorandum, ALEC anticipates distributing a cash dividend of AED 200 million (approximately $54 million) in April 2026. For the financial year ending December 31, 2026, the company expects to pay out AED 500 million (around $136 million) in dividends, which will be divided into two payments: one in October 2026 and another in April 2027.

Based on the projected AED 500 million dividend, the implied yield would be roughly 7.1% at the upper end of the offer price and about 7.4% at the lower end.

Following this, ALEC plans to implement a semi-annual dividend policy, with payments scheduled for April and October each year. The company aims to maintain a payout ratio of at least 50% of net profits, contingent upon board approval and available reserves.

Allocation Process for Shares

In terms of share allocation, 10% of the total offered shares will be reserved for the Emirates Investment Authority and the Pensions and Social Security Fund for Local Military Personnel in Dubai. This allocation will be taken from the second tranche of shares. Should either entity choose not to exercise its preferential rights, those shares will then be made available to other professional investors.

Subscription Period and Trading Timeline

The subscription period for the IPO commenced today and will continue until September 30, 2025, covering all investor tranches. The final offer price will be determined through a bookbuilding process, with an announcement expected on October 1, 2025. If market conditions are favorable and approvals are granted, trading on the DFM is anticipated to start on October 15, 2025.

In connection with the IPO, the selling shareholder has appointed xCube LLC as the price stabilization manager. This firm may conduct price stabilization transactions on up to 100 million shares, in compliance with regulatory requirements.

This IPO represents a pivotal moment for ALEC Holdings as it seeks to expand its presence in the market while providing investment opportunities for a range of investors.