#Dubai’s Up to $381 Million ALEC Contractor IPO Sells Out - Bloomberg

Dubai’s Up to $381 Million ALEC Contractor IPO Sells Out - Bloomberg

Dubai had demand for all shares on offer in an up to $381 million initial public offering of ALEC Engineering & Contracting LLC, marking the emirate’s latest push to privatize assets and capitalize on a construction boom in the Middle East.

State-backed Investment Corp. of Dubai is offering 1 billion shares, or a 20% stake in ALEC, at a price between 1.35 and 1.40 dirhams ($0.37-$0.38) apiece, according to terms of the deal seen by Bloomberg News. The higher end of the price range values the contracting firm at $1.91 billion.

Books were fully covered throughout the price range soon after opening.

Emirates NBD Capital and JPMorgan Chase & Co. are joint global coordinators on the sale, with Abu Dhabi Commercial Bank and EFG Hermes acting as joint bookrunners. Moelis & Co. is independent financial advisor.

The subscription period will run until Sept. 30 and shares are expected to list on the Dubai Financial Market on Oct. 15.

ALEC delivers large-scale projects in the UAE and Saudi Arabia including airports, energy infrastructure, hospitality and leisure developments such as Abu Dhabi’s SeaWorld and Dubai’s One Za’abeel tower.

The builder is expanding into data centers in both markets - it recently won a 5.3 billion dirham contract for Abu Dhabi’s Stargate data center project and is in contact with potential partners in Saudi Arabia including Humain and data center firm Khazna, chief executive officer Barry Lewis said in a press briefing last week.

Lewis said ALEC’s Saudi pipeline had not so far been impacted by the kingdom reprioritizing certain projects as lower oil prices strain its budget.

ALEC’s net income reached 363 million dirhams in 2024, a 53% year-on-year increase.

The contractor plans to pay a 200 million dirham dividend in April 2026, followed by 500 million dirhams to be split between October 2026 and April 2027.

Dubai’s privatization program has raised around $9.6 billion since it was launched in 2021, and has included the IPOs of a utility company, a taxi operator and a district cooling firm. In May, a fund linked to the emirate’s ruler floated a $584 million a residential real estate investment trust, and is planning to list a portfolio with malls and retail assets.