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Abu Dhabi's Bayanat sets IPO price at Dh1.1 per share

Opening of the subscription period ends on October 25

Published: Fri 21 Oct 2022, 9:53 PM

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Reuters

Reuters

Bayanat AI on Friday announced the start of the subscription period for Initial Public Offering (IPO) on the First Market of the Abu Dhabi Securities Exchange (ADX) and set offer price at Dh1.10 per share.

Bayanat, a G42 company, said the opening of the subscription period for the offering will end on October 25, 2022. It further said the company has gathered enough subscriptions to cover the professional investors’ offering of 534,285,715 shares.

"The company is expected to raise approximately Dh628 million upon offer completion and listing of the shares on ADX is expected on October 31, 2022. The offering is available to both retail and professional investors," according to the statement.

The company intends to offer 571,428,572 shares for public subscription, which will represent 22.22 per cent of the share capital of the company as at the listing date at the offer price. As at listing date, provided that the offering shares are fully subscribed, 77 per cent shareholding will be held by Group 42 Holding Ltd.

The company has entered into cornerstone investment agreements with Silver Lake and International Holding Company (IHC), who committed to purchase shares in the offering at the offer price of Dh1.10 per share. The cornerstone agreements reinforce the confidence Silver Lake, IHC and other international investors have in Bayanat, G42 and Abu Dhabi, and opens opportunities for further collaboration and business development.

Mega portfolio

Silver Lake is a leading global technology investment firm, with more than $92 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia.

Silver Lake’s portfolio companies generate nearly $266 billion of revenue annually and employ approximately 591,000 people globally. Silver Lake is making its first investment in a company to be listed on the ADX through the Bayanat IPO.

IHC is also participating in the offering, marking one of its largest investments in an AI-powered technology company. IHC was founded in 1998 as part of an initiative to diversify and develop non-oil business sectors in the UAE and has grown to become the most valuable listed holding company in the Middle East with a market cap of Dh619 billion as of June 30, 2022.

Bayanat reported revenues of Dh366.7 million for the fiscal year 2021, reflecting a year-on-year increase of 48 per cent compared to Dh247.8 million in 2020. Its gross margin was 48 per cent in 2021 compared to 46 per cent in 2020, while EBITDA increased from Dh76.7 million in 2020 to Dh104.7 million in 2021, representing an increase of 37 per cent year-on-year basis.

Bayanat’s net margin has increased to 30 per cent for the nine-month period ended September 30, 2022, up from 22 per cent for the same period in 2021.

Revenue for the nine-month period ended September 30, 2022 has reached Dh490.6 million (101 per cent year-on-year growth), with gross profit and EBITDA respectively at Dh225.9 million (104 per cent year-on-year increase) and Dh157.5 million (167 per cent year-on-year increase). Net cash for the nine-month period stands strong at Dh114.8 million compared to Dh12.1 million for the same period in 2021.

Bayanat is on track to report strong performance achievements by the end of the year.



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