Alec Holdings announced on Tuesday a price range of Dh1.35 to Dh1.40 per share for its upcoming initial public offering (IPO).
This sets Alec’s market value between Dh6.75 billion and Dh7 billion upon its listing on the Dubai Financial Market (DFM).
One billion shares, representing 20% of Alec’s capital, will be offered, with the offering size ranging from Dh1.35 billion to Dh1.40 billion.
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Dubai’s sovereign wealth fund, the Investment Corporation of Dubai (ICD), is selling one billion shares and will maintain an 80% stake in Alec.
Alec plans to pay a cash dividend of Dh200 million in April 2026, and another of Dh500 million for the year ending December 31, 2026, with the initial payment in October 2026 and the second in April 2027.
The dividend of Dh500 million suggests a yield of approximately 7.1% to 7.4%, depending on the share price. The company intends to distribute dividends semi-annually, in April and October each year, with at least 50% of net profits, subject to board approval and available reserves.
Retail investors will receive 5% of the shares, 94% will go to institutional investors, and 1% to Alec and ICD employees.
Additionally, 10% of the second tranche is reserved for the Emirates Investment Authority and the Pensions Social Security Fund of Local Military Personnel. If these entities do not apply for shares, they will be available to other professional investors.
The IPO subscription period begins today and ends on September 30, 2025, for all tranches. The final offer price will be decided through a book-building process and announced on October 1, 2025.
Emirates NBD Capital and JP Morgan Securities are acting as joint global coordinators and bookrunners, with Abu Dhabi Commercial Bank and EFG-Hermes UAE Limited as joint bookrunners.
Emirates NBD Bank is the lead receiving bank, with several others, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Dubai Islamic Bank, also appointed as receiving banks.
The company is slated to list on the DFM on October 15, 2025.
