Presight AI Holding PLC (Presight), an AI and cloud computing firm owned by Abu Dhabi’s G42, today announced the opening of the subscription period for its Initial Public Offering (IPO) on the Abu Dhabi Securities Exchange (ADX) First Market. The Company has received approval confirming that the Offering remains in line with Sharia-compliant parameters. Presight plans to raise $495 million from the IPO, becoming the second company from the UAE’ capital to tap the capital markets this year.
Presight’s listing comes days after Abu Dhabi National Oil Comoany (ADNOC) 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.
Presight plans to sell 1.36 billion shares at 1.34 dirhams a share, according to Bloomberg. At that price, Presight will be valued at 7.51 billion dirhams ($2.04 billion).
Read more: Presight AI plans listing on ADX via IPO
Offering details
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The opening of the subscription period for the Offering commences today, 13 March 2023 and will close on 17 March 2023. The shares are offered at a fixed price of 1.34 dirhams. The Sharia-compliant shares are expected to be listed on ADX on 27 March 2023.
On 3 March 2023, the Securities and Commodities Authority (SCA) approved the Company’s application for an IPO of 1,359,680,000 shares (Offer Shares) representing 24.24% of the Company’s share capital as of the listing date. Following the Offering, Group 42 Holding Ltd will continue to be the majority shareholder.
Financial performance and outlook
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.
Presight’s revenue growth has been strong at $423 million for the financial year ending 31 December 2022, up 16% on the financial year ending 31 December 2021. This revenue growth has resulted from a material growth in Presight’s customer order book comprising long-term recurring customer contracts.
Presight has demonstrated substantial growth in profitability, recording gross profit for the financial year ending 31 December 2022 of $266 million, up 92% on the financial year ending 31 December 2021, and net profit of $148 million for the financial year ending 31 December 2022, an increase of 55% on the financial year ending 31 December 2021. Gross and net profit margins are solid, at 63% and 35% respectively for the financial year ending 31 December 2022.
Subscription process
The Offering is available to both Retail and Professional Investors with the completion of the subscription on 17 March 2023 and expected listing of the shares on the ADX on 27 March 2023, subject to market conditions and obtaining the relevant regulatory approvals in the UAE.
Gulf IPOs
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 the emirate this year, an official said last week.
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