Tuesday 26 March 2024

#Dubai Weighs IPO of Construction Firm ALEC Amid Property Boom - Bloomberg

Dubai Weighs IPO of Construction Firm ALEC Amid Property Boom - Bloomberg

Dubai is considering an initial public offering of construction firm ALEC amid a property boom in the emirate that’s pushed commercial and residential real estate prices close to record levels.

State-backed Investment Corp. of Dubai has held early talks on a potential listing, people familiar with the matter said, asking not to be identified as the information isn’t public.

Details of the IPO, such as the size and timing, weren’t immediately available. No final decisions have been made and ICD may still decide against listing ALEC.

Representatives for ICD declined to comment.

An IPO of ALEC Engineering & Contracting LLC would be the latest by Dubai, which has been selling stakes in state-owned firms for the past two years as part of a push to deepen its capital markets.

The listing spree — which has raised $9 billion since 2021 — matches similar moves in neighboring Abu Dhabi and Saudi Arabia as governments seek funds to diversify their economies away from fossil fuels. The deals have drawn strong demand from both local and international investors, making the region a bright spot for IPOs over the past two years.

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