Presight AI’s $496m IPO attracts $25.8bn in orders

Presight AI Holding, a data analytics firm owned by Abu Dhabi’s G42 Group, has raised $496m (Dhs1.7bn) in its initial public offering (IPO), which attracted bids worth Dhs94.9bn from investors amid a boom in regional share offerings.

G42 sold 1.35 billion shares of Presight AI, equivalent to 24.24 per cent of the company’s paid-up capital, at a fixed price of Dhs1.34 apiece. The indicative price values the data analytics firm at Dhs7.51bn at the time of admission.

Presight AI unveiled its IPO plans on March 6 and trading of the shares is scheduled to commence on the Abu Dhabi Securities Exchange (ADX) on March 27 under the ticker symbol ‘PRESIGHT’.

Abu Dhabi-based International Holding Company is the cornerstone investor in Presight AI’s IPO, which was oversubscribed 136 times.

“We are delighted that Presight AI’s IPO has been met with overwhelming interest from both Retail and Professional Investors.

“The IPO will help us capitalize on the significant potential for market growth as demand for big data analytics powered by AI continues to grow across multiple sectors,” Thomas Pramotedham, CEO of Presight said.

He added that the oversubscription of the offering is a testament to investor confidence in the company’s growth strategy.

Presight AI’s listing is the second IPO from G42’s portfolio. Bayanat, a geospatial and data analytics firm, raised $171m in an IPO backed by US private equity firm Silver Lake in October 2022. G42 is reportedly considering more IPOs from its portfolio, including G42 Healthcare and AIQ, its joint venture with UAE energy giant ADNOC Group.

Read: Abu Dhabi says there’s more to come after year’s biggest IPO

The IPO was managed by First Abu Dhabi Bank and Dubai Islamic Bank.

Presight AI’s growth potential

Meanwhile, 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.

The company’s revenue rose by 16 per cent to $423m for the financial year ending December 31, 2022, driven by the growth in its customer order book comprising long-term recurring customer contracts while its full-year net profit surged by 55 per cent $148m.

شهد الطرح العام الأولى لشركة بريسايت طلباً قوياً من المستثمرين. وقد جمعت الشركة ما يكفى من الاكتتابات لتغطية الطرح 136 مرة باستثناء التزام المستثمر الاستراتيجي بموجب اتفاقية الاستثمار الاستراتيجي.

المزيد من المعلومات عبر
https://t.co/6t7Qj6ezIv
#اكتتاب_بريسايت
@ADX_AE pic.twitter.com/se56SlNUL2

— Presight.ai (@PresightAI) March 17, 2023

While 20 per cent of Presight AI’s sales last year came from overseas, the company looks to get more than half its revenue from international contracts starting in 2026.

The company said, in its prospectus, that it will invest to expand its footprint across four continents. The data analytics firm is working with the Abu Dhabi Accountability Authority to bring its technology to the audit sector and is looking at relationships with central banks, company CEO Pramotedham told Bloomberg.

Presight AI supports public services and commercial businesses of all magnitudes by unlocking positive societal impact with omni analytics and AI to deliver insight-driven decision-making across every sector at scale.

Its solutions are deployed across three core sectors with significant potential for impact and innovative market growth; public services, finance and sports.

Attractive IPO market

Presight AI’s listing comes days after ADNOC Gas’s trading debut on the ADX after raising $2.5bn in what is the world’s biggest flotation this year.

Read: ADNOC Gas IPO raises $2.5bn, attracts $124bn in demand

The company’s IPO is the latest in a series of offerings in the GCC region as governments seek to fund their economic diversification away from reliance on oil revenues while bringing in more international investors into their markets.

UAE-based exchange house Al Ansari Financial Services plans to raise as much as Dhs772.5m from an IPO on the Dubai Financial Market.

Kuwait-based asset management firm, KAMCO Invest, said the IPO pipeline for 2023 remains strong and “based on our estimates at the start of the year the pipeline could range between 27-39 companies between announced and rumoured GCC IPO issuances”.