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.