Dubai’s ALEC IPO values builder at $1.9B

Dubai’s $381 million IPO of ALEC Engineering & Contracting drew full demand across the price range in a show of investor appetite, as the emirate capitalizes on its construction boom.

The Investment Corporation of Dubai, the investment arm of the Dubai government and the sole shareholder of ALEC, is selling a 20% stake, giving the builder a valuation of about $1.9 billion.

Books were fully covered within hours of opening, Bloomberg reports.

Emirates NBD Capital and JPMorgan are leading the sale, alongside Abu Dhabi Commercial Bank and EFG Hermes, with Moelis as independent adviser.

ALEC delivers large-scale projects in the Gulf, including airports, energy infrastructure and data centers, having recently won a $1.4 billion contract for Abu Dhabi’s Stargate project.

Dubai Investments preparing IPOs for four of its subsidiaries

After leading the Gulf region as a source for IPOs last year, the UAE is kicking off 2025 with a new slate of stock offerings.

Dubai Investments, which is backed by the sovereign wealth fund Investment Corporation of Dubai, plans to take four of its subsidiaries public this year, CEO Khalid bin Kalba tells The National.

The company’s business units span a range of sectors, including real estate, building materials and construction, education and financial services, though Bin Kalba declined to be specific. “We talked to the local authorities with [regards to] our intention to IPO,” he said.

“The discussion is going on now [around] what multiples we are going to get and what value we are going to get for our divestments.”