(Bloomberg) — Dubai will seek up to $500 million from the initial public offering of ALEC Engineering & Contracting LLC, according to people familiar with the matter, as the emirate seeks to revive its privatization drive.
State-backed Investment Corp. of Dubai is looking sell shares in the construction company as early as mid-2025, the people said, declining to be identified while discussing confidential information. No final decisions have been taken, with details like size and exact timeline still under discussion, according to the people.
Bloomberg News previously reported that ALEC had picked Emirates NBD Capital and JPMorgan Chase & Co. to work on the planned offering, with Moelis & Co. advising ICD.
The firm may add banks to the roster of arrangers, the people said.
Representatives for ALEC did not respond to requests for comment. ICD could not be reached for comment.
ALEC’s IPO would be Dubai’s first state-backed listing since Parkin Co.’s blowout debut last year, and comes as part of the emirate’s push to deepen its capital markets.
Dubai Holding, an investment vehicle controlled by the emirate’s ruler, is preparing to list the residential and commercial units of its property portfolio separately, Bloomberg News has reported.
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The deliberations come amid a boom in Dubai’s property market driven by the influx of millionaires, financial professionals and business leaders flocking to the emirate, lured by its low taxes and friendly visa regime.
The government’s privatization program has raised around $9 billion since it was launched in 2021, and has included the IPOs of a utility company, a taxi operator and a district cooling firm.
In neighboring Abu Dhabi, wealth fund ADQ is preparing to sell shares in Etihad, which could become the first major airline to be listed in the Gulf. IT services firm Alpha Data is also working with banks on an IPO in Abu Dhabi.
