Bayanat IPO: G42-owned company's IPO oversubscribed 90 times

Offering attracted significant demand from investors with gross demand amounting to more than 15.7$bn

Bayanat said the listing and commencement of trading in shares on the Abu Dhabi Securities Exchange is expected to start on Monday, subject to customary closing conditions. Photo: ADX
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Bayanat, a geospatial data products and services provider owned by Abu Dhabi-based artificial intelligence and cloud computing company G42, on Thursday announced the completion of the public subscription for its initial public offering on the first market of the Abu Dhabi Securities Exchange.

The offering attracted significant demand from investors, with gross demand amounting to more than Dh57.5 billion ($15.7bn) — an oversubscription of 379 times excluding cornerstone investors and 90 times on aggregate, Bayanat said in a statement.

The price of the offering was set at Dh1.10 per ordinary share and the total value of the offer shares equalled more than Dh628.5 million. This is equivalent to 22.22 per cent of Bayanat’s share capital at listing.

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The IPO provides us the opportunity to share our success with a wider audience and continue innovating our world-class solutions underpinned by a robust growth trajectory
Tareq Al Hosani, chairman of the board of directors of Bayanat

Bayanat said the listing and commencement of trading in shares on the ADX is expected to start on Monday, subject to customary closing conditions, under the symbol “Bayanat”.

After the IPO, Bayanat will become the first and only listed geospatial intelligence company in the Middle East and North Africa region.

“The overwhelming demand for our offering demonstrates the clear trust and confidence of the investment community in the UAE’s booming technology sector,” said Tareq Al Hosani, chairman of the board of directors of Bayanat.

“The IPO provides us the opportunity to share our success with a wider audience and continue innovating our world-class solutions underpinned by a robust growth trajectory.

“We are excited to begin our journey as a listed company, which will only serve to solidify our positioning as a leading provider of AI-powered geospatial solutions.”

Last week, the professional investor tranche that offered more than 534.28 million shares was oversubscribed 41 times within hours of the subscription opening, which excluded commitments received from cornerstone investors.

Private equity company Silver Lake — which manages more than $92bn in combined assets and has taken up stakes in some of the world's best-known technology companies, including Airbnb, Chinese payments firm Ant Financial, Expedia Group and Twitter — is a cornerstone investor.

International Holding Company, the most valuable business listed on the Abu Dhabi bourse, is also a cornerstone investor in the IPO.

G42 acquired Bayanat in 2020. The company was born out of the commercialisation of the UAE's Military Survey Department, a sector of the country's armed forces.

It provides national-level mapping and geospatial products and services for both the public and private sectors in the UAE.

“As we embark on an exciting phase of growth, we aim to deliver sustainable, long-term shareholder value through a strategy of innovation, research and development. This would be made possible by realising commercially viable advanced geospatial AI solutions,” said Hasan Al Hosani, chief executive of Bayanat.

“The strong demand for the IPO, which was 90 times oversubscribed, is a true testament to Bayanat’s proven business model and financials, and we look forward to taking our new investors along on our journey to further growth.”

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As we embark on an exciting phase of growth, we aim to deliver sustainable, long-term shareholder value through a strategy of innovation, research and development
Hasan Al Hosani, chief executive of Bayanat

Upon listing on ADX, G42 will retain 77 per cent ownership of the company.

First Abu Dhabi Bank acted as the lead receiving bank on the IPO, Dubai Islamic Bank the lead manager and International Securities the lead placement agent.

Bayanat registered an annual 48 per cent increase in revenue, which stood at Dh366.7m in its 2021 fiscal year, the company said.

Revenue for the first nine months of 2022 more than doubled to about Dh491m. Gross profit in the period to the end of September more than doubled to Dh225.9m, while earnings before interest, taxes, depreciation and amortisation more than tripled to Dh157.5m.

The IPO comes after a flurry of listings in the UAE and wider region, where investor demand has been strong as economies rebound at a quicker pace from the coronavirus-induced slowdown and liquidity has been shored up by high oil prices.

Various government-owned companies have gone public in the UAE and private companies are now following suit.

Earlier this month, Abu Dhabi healthcare provider Burjeel Holdings listed its shares on the ADX after raising more than Dh1.1bn from an 11 per cent stake sale in the company’s IPO.

Other companies to list on the bourse this year include Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, and the Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate.

The number of listings in the Mena market increased sixfold during the first six months of this year, with 24 IPOs raising $13.5bn, according to an EY report on the region. In the second quarter of 2022, nine IPOs raised about $9bn.

Updated: October 27, 2022, 6:01 PM
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