Abu Dhabi's G42 raises $100m from stake sale in Presight AI

Move aims to boost Presight's international institutional investor base and improve liquidity

Presight was listed on the Abu Dhabi Securities Exchange in 2023. Victor Besa / The National

UAE artificial intelligence company G42 has raised $100 million from the sale of a 2 per cent stake in data analytics business Presight AI to institutional investors.

G42 sold 118 million ordinary shares at Dh3.21 each through an accelerated bookbuild offering, according to a filing on Thursday to the Abu Dhabi Securities Exchange, where Presight's shares trade.

"The transaction saw strong demand from investors in the UAE and internationally and successfully achieves G42’s objectives to broaden the institutional ownership of Presight as well as increase the free float to improve trading liquidity," it said.

Following the offering to qualified institutional investors, G42 will retain its majority stake with about 68.5 per cent ownership, down from 70.5 per cent previously.

It has also committed to a 180-day restriction on selling additional shares.

The transaction was key particularly as Presight was preparing for inclusion in the FTSE Emerging Market Index, G42 said in a statement on Wednesday.

“Presight is a critical pillar of the G42 ecosystem and a cornerstone of our Intelligence Grid offering,” said Ricky Thirion, group chief financial officer of G42.

Presight, which listed on the Abu Dhabi Securities Exchange in 2023, reported a nearly 8 per cent rise in second quarter net profit attributable to shareholders to reach Dh77 million ($21 million).

Revenue during the period increased by more than 53 per cent to Dh523.9 million. International markets contributed 26.8 per cent of second quarter revenue, up significantly from 4.9 per cent in the same period last year, the company said.

Based on its “robust order backlog and a growing proportion of revenue from multiyear contracts”, Presight also upgraded its medium-term financial outlook. It anticipates compound annual growth between 2023 and 2027 in group revenue of 21 per cent to 27 per cent, up from a range of 19 per cent to 25 per cent.

“This year, we're doubling down on financial services and insurance,” Presight chief executive Thomas Pramotedham told The National last month.

Presight this year also launched a joint venture with the UAE Central Bank to build sovereign AI platforms for payments, central bank digital currencies and real-time settlement systems.

G42 said settlement of the transaction expected on or around September 10.

The company is the sole seller in the transaction, with no other shareholders participating. All proceeds will go to G42, with no impact on Presight's operations or other shareholders.

First Abu Dhabi Bank and Jefferies are acting as joint global co-ordinators and joint bookrunners, with International Securities as joint bookrunner.