DUBAI, 15th September, 2025 (WAM) -- ALEC Holdings today announced its intention to list 20 percent of its share capital on the Dubai Financial Market (DFM) through an Initial Public Offering (IPO), with the Investment Corporation of Dubai (the "Selling Shareholder" or "ICD") retaining the right to amend the size of the Offering at any time prior to the end of the subscription period at its sole discretion, subject to applicable laws and the approval of the Securities and Commodities Authority (SCA).

ALEC Holdings is a market-leading diversified engineering and construction group with operations focused on large-scale, complex and iconic buildings and energy projects in the UAE and Saudi Arabia.

ICD, the principal investment arm of the Government of Dubai, is currently the sole shareholder of ALEC and is offering 1,000,000,000 (one billion) ordinary shares ("Shares") through the Offering. The Offering subscription period is expected to run from 23rd to 30th September 2025 (both days included).

The Offering will be made available to Individual Subscribers (as defined below), as part of the First Tranche; Professional Investors outside the United States (as defined below), as part of the Second Tranche, and ALEC Eligible Employees and ICD Eligible Employees (together "Eligible Employees"), as part of the Third Tranche. Admission of Shares for trading on the DFM is anticipated on or around 15th October 2025.

The Internal Shariah Supervision Committee of Emirates NBD Bank PJSC has issued pronouncements confirming that, in its view, the Offering is compliant with Shariah principles.

Sustained operational excellence and strong financial management discipline have allowed ALEC to deliver uninterrupted profitability for the past 18 years, successfully navigating macroeconomic and geopolitical disruptions without compromising financial stability.

With a reputation as the contractor of choice for large, iconic and technically complex projects, ALEC delivers transformative developments across the UAE and KSA. Examples include One Za'abeel, a mixed-use development with the world's longest cantilever, SeaWorld Abu Dhabi, the world's largest indoor marine theme park, and Dubai Hills Mall, for which ALEC was awarded "Retail Project of the Year 2022".

ALEC maintains a strong pipeline of large-scale projects, reflected in its AED35.4 billion backlog as at 30th June 2025.

ALEC intends to distribute a cash dividend of AED200 million, payable in April 2026, and a cash dividend of AED500 million for the financial year ending 31st December 2026, payable in October 2026 and April 2027.

Thereafter, the Company expects to distribute cash dividends on a semi-annual basis (in April and October of each year), with a minimum payout ratio of 50 percent of the net profit generated for the relevant financial period, subject to the approval of the Board of Directors and the availability of distributable reserves.

Hussain Nasser Lootah, Chairman of ALEC Holdings, commented, "This IPO is a natural next step in ALEC's journey. Over the past two and a half decades, we have built a strong reputation as a trusted regional leader, delivering some of the most complex and iconic projects in the UAE and the GCC.

We enter the public markets from a position of strength, supported by a buoyant regional construction sector underpinned by ambitious national agendas in our home market and in Saudi Arabia, and a favourable economic environment. As we become a publicly listed company, we are committed to rigorous governance, sustainable returns, and leading with integrity."

Barry Lewis, Chief Executive Officer of ALEC Holdings, said, "The IPO of ALEC underscores the trust and reputation we've earned across our 26-year journey, the sustained financial growth we've delivered, and the exciting opportunities before us in two of the world's most dynamic construction markets: the UAE and KSA."

The First Tranche is allocated 5 percent of the Offer Shares, amounting to 50,000,000 (fifty million) Shares. Each successful subscriber in the First Tranche will be guaranteed a minimum allocation of 2,000 Shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus.

The Second Tranche is allocated 94 percent of the Offer Shares, amounting to 940,000,000 (nine hundred forty million) Shares, and is restricted to "Professional Investors".

The Third Tranche is allocated 1 percent of the Offer Shares, amounting to 10,000,000 (ten million) Shares. Each successful subscriber in the Third Tranche will be guaranteed a minimum allocation of 10,000 Shares, provided that the total number of shares issued under the minimum guaranteed allocation does not exceed the Tranche size and remains within the limits and conditions set out in the Prospectus. If all of the Offer Shares in the Third Tranche are not fully subscribed for, the unsubscribed Offer Shares will be available to the First Tranche.

The Shares are expected to be listed on the DFM under the ticker symbol "ALEC", with trading anticipated to commence on or around 15th October 2025.

Revenue of the company more than doubled from AED3.6 billion in FY 2022 to AED8.1 billion in FY 2024, and grew by 56.0 percent year-on-year in H1 2025, reflecting the strength of its backlog and ability to scale successfully.

EBITDA grew from AED259 million in FY 2022 to AED646 million in FY 2024, with margin expanding from 7.2 percent to 8.0 percent.

Net income rose steadily, reaching AED363 million in FY 2024.