The Investment Corporation of Dubai is reportedly contemplating the listing of ALEC.
Bloomberg reported that amidst a surge in Dubai’s real estate sector with property prices reaching near-record levels, there is contemplation regarding an initial public offering (IPO) for construction firm ALEC Engineering & Contracting.
Sources familiar with the matter have disclosed that the Investment Corporation of Dubai (ICD), backed by the state, has commenced initial discussions regarding the possibility of an IPO and listing of ALEC.
IPO push as real estate sector booms
In the midst of a booming real estate sector, ALEC, a construction company operating across various sectors such as hospitality, leisure, retail, airport, residential, and commercial projects, could potentially join Dubai’s array of publicly traded companies.
Specific details regarding the IPO, including its size and timing, have not been disclosed by ICD, the investment arm of the Dubai government.
As reported by Bloomberg on Tuesday, discussions are ongoing, and ICD retains the possibility of withdrawing from the listing.
ALEC was acquired by ICD from the Al Jaber Group, headquartered in Abu Dhabi, in 2017. Since then, ALEC has solidified its position as a key player in the construction industry, undertaking diverse projects in Dubai and beyond.
The potential IPO of ALEC coincides with a robust property market in Dubai, fueled by strong demand for both commercial and residential real estate. Market observers are eagerly awaiting further developments regarding ALEC’s potential debut on the stock market.
Push for IPOs
The news regarding ALEC follows the recent impressive IPO debut of Parkin, which saw its shares surge by over 35% on Thursday.
Parkin, the first IPO of 2024 in the UAE, was spun off from the parking unit of the Dubai Roads and Transport Authority (RTA).
