Presight AI IPO: G42 unit set to raise $496m from Abu Dhabi Securities Exchange listing

Company enters into a cornerstone investment agreement with International Holding Company

The Abu Dhabi Securities and Exchange has experienced a rush of listings in recent years. Victor Besa / The National

Presight AI, a G42 company focused on data analytics and artificial intelligence, plans to raise more than Dh1.82 billion ($496 million) from an initial public offering on the Abu Dhabi Securities Exchange's first market.

The company, which was founded in 2020, plans to sell more than 1.35 billion shares at Dh1.34 a share, it said in its IPO announcement and prospectus on Monday.

The shares on offer represent 24.24 per cent of the company’s stock upon listing.

Presight said it received approval for the listing from the Securities and Commodities Authority on March 3.

The IPO will run from March 13 to March 17. More than 168 million shares, or 12.38 per cent of the total shares on offer, will be allocated to retail investors.

More than 1.19 billion shares, or 87.62 per cent of the offer, have been reserved for professional investors.

Presight said it had entered into a cornerstone investment agreement with International Holding Company, the UAE's most valuable listed company.

IHC said the value of its investment would be disclosed to the market upon the completion of subscription and regulatory formalities.

Presight's shares are expected to start trading on the ADX's first market on or around March 27, 2023.

Presight is based at the Abu Dhabi Global Market and focuses on three sectors that it says have significant potential for innovative market growth — public services, finance and sports.

The company is using advanced data analytics to predict environmental impact, enable efficient infrastructure use and transform educational outcomes.

Presight has more than 10 flagship technology solutions, in excess of 100 AI models and clients on three continents around the world.

“Our intention to list … is a key step in realising our five-year strategy to strengthen operational expertise, create meaningful headroom for inorganic growth and expand our services into new markets and sectors globally,” said Thomas Pramotedham, chief executive of Presight.

“We have ambitious plans that leverage our solid historical growth and healthy pipeline of order bookings … Through our long-term committed contracts, we are well positioned to deliver strong returns to shareholders and stakeholders throughout the business.”

With the increase in demand for Big Data analytics, Presight “is well positioned to capitalise on the significant market growth” in numerous sectors, it said in its public announcement.

The company's “strong successes have set a solid platform for international growth”, it said.

Presight’s Transformative Analytics Quotient platform, gathers and analyses multi-source data that helps to enable forecasting of probable outcomes that support decision-making.

During the Covid-19 pandemic the company supported the UAE government with analytics, helping it to keep its borders open. It also supported the country as it hosted the Expo 2020 Dubai.

Presight has grown its operations since it was founded and signed its first international agreement — the National Transformation Programme of Digital Angola 2024.

“Presight’s journey has evolved rapidly since inception, now positioned as the region’s leading Big Data analytics company powered by AI, trusted with country-level strategic mandates to drive digital transformation and innovation,” said chairman Mansoor Al Mansoori.

The IPO drive in the Middle East has continued to gather pace in 2023 after the region registered 48 listings in 2022 that raised more than $23 billion last year, compared with $7.52 billion from 20 offerings in 2021.

Last week, Adnoc raised about $2.5 billion from the sale of a 5 per cent stake in its gas business, marking the year's largest listing globally. The Adnoc Gas listing was about 50 times oversubscribed and drew more than $124 billion in orders.

Presight's IPO is being managed by First Abu Dhabi Bank while Dubai Islamic Bank is the lead receiving lender.