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G42 plans to raise $495m from Presight IPO

G42 unit plans to sell 1.36 billion shares representing 24.24 per cent of its share capital at Dh1.34 a share, valuing the company at Dh7.51 billion

Presight AI Holding, an artificial intelligence-powered data analytics firm owned by Abu Dhabi’s G42, plans to raise $495 million from an initial public offering.

Presight, the second UAE firm to tap the capital markets this year, plans to sell 1.36 billion shares representing 24.24 per cent of its share capital at Dh1.34 a share, valuing the company at Dh7.51 billion.

The latest listing is the second IPO from G42’s portfolio. Bayanat, a geospatial and data analytics firm, in October raised $171 million in an IPO backed by US private equity firm Silver Lake.

In a statement, Presight said it had received approval confirming that the offering remains in line with Sharia-compliant parameters. The opening of the subscription period commences on March 13, 2023 and will close on March 17,2023. The Sharia-compliant shares are expected to be listed on ADX on March27, 2023.

The offering is available to both Retail and Professional Investors with the completion of the subscription on March 17 and the expected listing of the shares on the ADX, subject to market conditions and obtaining the relevant regulatory approvals in the UAE, the company said.

Presight’s listing comes days after Abu Dhabi National Oil Company raised $2.5 billion from its gas unit’s IPO, which is the biggest listing in the world this year so far and drew $124 billion in orders.

The IPOs are the latest in a series of stock sales in the Gulf as governments seek to fund a transition away from fossil fuels and bring more international investors into their markets. At least eight companies are expected to list in Abu Dhabi this year, according to reports.

Presight’s owner G42 is an artificial intelligence and cloud computing firm, with operations spanning from energy to healthcare. The firm plans to build up teams in Singapore, Jakarta, Shanghai, as well as in Tel Aviv to support its 42X Fund.

International Holding Company will be a cornerstone investor in Presight’s listing, the company said in a statement.

The IPO is managed by First Abu Dhabi Bank PJSC and Dubai Islamic Bank PJSC. Trading is set to start on March 27.

Presight has demonstrated a strong track record of historical performance that is underpinned by solid growth in recent years, a robust balance sheet with headroom to capture forecasted growth, and a strong organic pipeline driven by dependable and predictable revenues thanks to long-term committed and recurring contracts.

The company said its revenue growth has been strong at $423 million for the financial year ending December 31, 2022, up 16 per cent year-on-year basis. This revenue growth has resulted from a material growth in Presight’s customer order book comprising long-term recurring customer contracts. The company recorded gross profit of $266 million for 2022, up 92 per cent from the previous year, and a net profit of $148 million, an increase of 55 per cent from the year before.

G42 is also considering more IPOs from its portfolio, including G42 Healthcare and AIQ, its joint venture with UAE national energy firm Adnoc, people familiar with the matter said this year.

— issacjohn@khaleejtimes.com