Presight AI surges 176% in Abu Dhabi debut after $496m IPO

Presight AI Holding shares soared 176 per cent on its trading debut Monday after the big data analytics firm raised $496m (Dhs1.7bn) in its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX).

The company’s shares shot up as much as 176 per cent to Dhs3.70 compared to Presight’s IPO price of Dhs1.34 apiece, taking its market capitalisation to Dhs18.2bn. However, the stock retreated and closed the market at Dhs3.25.

Presight AI, the data analytics firm’s parent G42 Group, sold 1.35 billion shares, equivalent to 24.24 per cent of the company’s paid-up capital. Abu Dhabi-based International Holding Company was the cornerstone investor in Presight AI’s IPO, which was oversubscribed 136 times.

“We are delighted to have completed Presight’s IPO and to begin our next chapter as only the second technology company to be listed on the ADX, reinforcing our position as a pioneer in the industry,” said Mansoor Al Mansoori, chairman of Presight AI.

Today we are celebrating our listing on the Abu Dhabi Securities Exchange (ADX) and are now open for trading under the ticker symbol PRESIGHT.

For more info, visit: https://t.co/hVHEeRXLwi@ADX_AE #PresightIPO #IPO #DataAnalytics #AbuDhabi #UAE pic.twitter.com/d6zbU9Ld7r

— Presight.ai (@PresightAI) March 27, 2023

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.

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.

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

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 Thomas 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.

IPO boom

The company’s market debut 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.

The Middle East has seen a continued appetite for offerings, with 2023 IPOs seeing healthy investor appetite with oversubscribed books and shares trading above their listing price.

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”.

UAE remittance and money exchange firm Al Ansari Financial Services raised Dhs773m via IPO after pricing shares at the top of the range. The IPO – which is Dubai’s first in 2023 – attracted total demand of more than Dhs12.7bn, including a Dhs200m commitment from cornerstone investor National Bonds.

Read: Al Ansari Exchange raises Dhs773m in IPO, attracts bids worth Dhs12.7bn

Al Ansari will list on the Dubai Financial Market on April 6, 2023.

Earlier in March, ADNOC Gas surged 27 per cent on trading debut on the ADX after it $2.5bn in what is currently the world’s biggest IPO. Abraj Energy Services has also jumped almost 18 per cent from its offer price in Oman.