Abu Dhabi firm G42 subsidiary Bayanat to launch IPO this month

Bayanat AI, a subsidiary of G42, will sell 571.428 million shares through an initial public offering (IPO) and list on the First Market of the Abu Dhabi Securities Exchange (ADX).

This will represent 28.5 per cent of the share issued capital and 22.2 per cent of its share capital as of the listing date.

The offer price per share will be Dh1.1 and the total value of the offer shares will be Dh628.571 million ($171.2 million)

The subscription period for the listing will open on October 21, 2022, and close on October 25, 2022.

The company allocated 37,142,857 shares to retail investors with a minimum application size of Dh5,000 and any additional application in increments of Dh1,000. There is no maximum application size for retail subscribers.

For institutional subscribers, it allocated 534,285,715 shares.

The company could increase its IPO size in case of oversubscription.

The UAE bourses witnessed a number of IPOs on both the Dubai Financial Market and the Abu Dhabi Securities Exchange by the public and private sector companies over the last few years. Analysts expect a strong IPO pipeline in the UAE and the region over the next three years from the public and private sectors.

Abu Dhabi-based Bayanat provides AI-powered geospatial intelligence to a number of sectors such as defence, environment, energy and resources, smart cities and Transportation. Its offering includes topographic, hydrographic and aeronautical products and charts, as well as spatial data surveying, analysis, management, modelling, visualization and cartography services.

Bayanat reported revenues of Dh366.7 million for the fiscal year 2021, a year-on-year increase of 48 per cent, compared to Dh247.8 million for 2020. Its gross margin was 48 per cent in 2021 compared to 46 per cent in 2020, while EBITDA increased from Dh76.7 million in 2020 to Dh104.7 million in 2021, representing an increase of 37 per cent year-on-year.

Revenue for the nine months ended September 30, 2022, reached Dh490.6 million, 101 per cent growth year-on-year.

The company claimed it is on track to report strong performance achievements by the end of the year.

“We are confident that the company is now strategically positioned to enter a new phase of growth with its planned listing on ADX as we look to deliver sustained shareholder value,” said Tareq Al Hosani, Chairman of Bayanat.

As part of our ongoing efforts to catalyse positive development across the communities in which we operate, we look to play a significant role in the UAE’s economic growth, as well as that of the region and globally. The promising commercial market for our advanced solutions is expected to grow exponentially within the next five years, and Bayanat’s proven business model and ambitious growth strategy will serve as a foremost determinant of our aspiration to become a powerhouse in global AI-powered geospatial intelligence.”

Hasan Al Hosani, CEO of Bayanat, said: “To sustain this robust growth, we have introduced a comprehensive business strategy that looks to broaden Bayanat’s established portfolio of solutions as well as enhance its technical capabilities, alongside which we will continue to work closely with the G42 ecosystem and our local and global partners to further invest in R&D and as part of our ambition to chart greater progress against our environmental, social and governance commitments.

The lead receiving bank is First Abu Dhabi Bank while Dubai Islamic Bank is the lead manager.

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