AI catches up to the UAE’s IPO wave as Abu Dhabi’s Bayanat opens for subscription

Subscriptions now opened for Abu Dhabi-based Bayanat AI, which has priced its shares at Dh1.1 each, the AI technology wave is ready to ride the IPO boom in the United Arab Emirates. By selling 22.2 percent of the firm at the time of listing on ADX, Bayanat AI, a member of the G42 Group with a focus on AI and healthcare, expects to raise Dh628 million.
The offer received an instant over-subscription with ‘professional investors’. Just over 6 percent of the total offer has been marked for retail investors. “Bayanat is pleased to announce that it has gathered enough subscriptions to cover the professional investors’ offering of 534.28 million shares,” said a statement.
The subscription period will run until October 25, and start of trade on ADX set for October 31. It follows the successful listing of hospital operator Burjeel Holdings and comes amidst market talk of another ‘imminent’ IPO in Dubai.
While geospatial solutions remains a core part of Bayanat AI – which G42 acquired in 2020 – what has caught the public – and investor’s – eye is the company’s ‘smart mobility’ solutions that have gone live on Yas and Saadiyat islands. Its solutions are behind the autonomous driving already available and will be expanded as more of the support infrastructure and regulations click into place.
“The first level implementation are done while the mass transport system will soon follow in the coming weeks,” said Renyl Rauf, CFO at Bayanat AI. “We are building predictive capabilities around AI to build and operate smart cities, their infrastructure, and even manage energy consumption.
“The autonomous driving initiative at Yas Island was a pilot project, with very few vehicles plying on the streets. There are various steps to the self-mobility process, and the regulator needed comfort about all aspects. This has been delivered by whatever work we have delivered since.”
According to the CFO, the Bayanat AI financials have already seen a boost from the rollout of new solutions.
Bayanat AI revenues were at Dh366.7 million for 2021, up 48 percent. The gross margin would surely catch attention at a substantial 48 percent, while EBITDA increased from Dh76.7 million in 2020 to Dh104.7 million. The net margin increased to 30 percent for the nine-month period that ended September 30, 2022, up from 22 percent year-on-year.
“In the last nine months, our key numbers are running in triple-digits,” said the CFO. “We have developed a model that takes in any data – be it in mapping, personal, procurement – and combine into an operating model that’s easily replicated. The costs remain the same and these solutions can be deployed across sectors.
According to Rauf, it was always part of the plan to take Bayanat AI into IPO at the first opportunity. “After the G42 takeover in 2020, a capital market journey was always the intent. It was last year we started on the process, and it took us some time to get through the detailed analysis. Finally, we agreed to all the key aspects and we are ready to get going.
The goal of seeking further funds is to quicken and even broaden geographic expansion, “acquire new customers, and concentrate on inorganic growth through buying companies that have tech that complements our own or perhaps something new.”