ALEC Holdings has introduced the worth vary for its initial public offering (IPO) and the beginning of the subscription interval for its itemizing on the Dubai Monetary Market (DFM).
The IPO value vary has been set between AED1.35 and AED1.40 ($0.37–$0.38) per share, implying a market capitalisation at itemizing of between AED6.75 billion ($1.84bn) and AED7 billion ($1.91bn).
A complete of 1,000,000,000 atypical shares will probably be supplied, representing 20 per cent of ALEC’s share capital. This locations the entire providing measurement between AED1.35 billion ($367m) and AED1.40 billion ($381m).
ALEC Holdings IPO in Dubai
All shares being supplied are current shares. The Funding Company of Dubai (ICD), the principal funding arm of the Authorities of Dubai, is promoting 20 per cent of its possession within the firm.
ALEC itself won’t obtain proceeds from the providing. Following completion—except the supply measurement is elevated—the promoting shareholder will retain an 80 per cent stake.
ICD reserves the fitting to amend the providing measurement earlier than the top of the subscription interval at its sole discretion, topic to UAE regulation and Securities and Commodities Authority approval.
Based on its dividend coverage outlined within the UAE prospectus and the worldwide providing memorandum, ALEC expects to distribute a money dividend of AED200m ($54m) in April 2026, and AED500m ($136m) for the monetary 12 months ending December 31, 2026.
The latter will probably be paid in two instalments, in October 2026 and April 2027.
Based mostly on the AED500 million dividend, the implied yield can be round 7.1 per cent on the higher finish of the supply value and roughly 7.4 per cent on the decrease finish.
Thereafter, ALEC plans to undertake a semi-annual dividend coverage, paying in April and October annually, with a payout ratio of a minimum of 50 per cent of web earnings, topic to board approval and out there reserves.
As a part of the allocation course of, 10 per cent of the entire supply shares (deducted from the second tranche) will go equally to the Emirates Funding Authority and the Pensions and Social Safety Fund for Native Navy Personnel in Dubai.
If both entity doesn’t train its preferential rights, shares will probably be made out there to different skilled traders.
The subscription interval opens right this moment and runs till 30 September 2025 for all investor tranches. The ultimate supply value will probably be decided by way of a bookbuilding course of and is predicted to be introduced on October 1, 2025.
Topic to market situations and approvals, buying and selling on the DFM is predicted to start on October 15, 2025.
In reference to the IPO, the promoting shareholder has appointed xCube LLC as value stabilisation supervisor.
In step with rules, it might conduct value stabilisation transactions on as much as 100,000,000 shares.