G42 has built up its visibility in multiple sectors, including high-tech, healthcare, and industrial. Image Credit: Supplied

Dubai: Another privately owned entity in Abu Dhabi – Bayanat and part of the G42 conglomerate – has confirmed an IPO, offering 28.5 per cent at Dh1.1 a share. The offer period commences October 21 and closes October 25, with retail investors eligible for 6.5 per cent of the float, according to a public announcement. (The IPO could be upsized, if the company so decides.)

Bayanat is into high-end tech, focussing on geospatial and data analytics/AI. Its services are used by organisations and corporate clients. The IPO size will be Dh628.57 million and the shares are to list on ADX on October 31.

It started operations as a Mubadala-owned  entity - focussing on GIS (Geographical Information Systems) - in 2011, and then became a division of Emirates Defence Industries in 2016. G42 then made the acquisition of Bayanat. G42, which has built its reputation around AI-led services and data analytics across industries, has deep partnership with various blue-chip entities in Abu Dhabi.

Retail investors have been allocated  6.5 per cent of the IPO, representing 37.14 million shares. All retail investors need to hold a NIN with ADX. Representing 37.14 million shares. All retail investors need to hold a NIN with ADX. The minimum application size is Dh5,000 and in multiples of Dh1,000 thereafter.

Professional investors have been allotted 534.28 million shares, or 93.5 per cent of the offer. (As at listing date, provided the offer is fully subscribed, 77 per cent shareholding will be held by Group 42 Holding ltd.)

"The promising commercial market for our advanced solutions is expected to grow exponentially within the next five years," said Tareq Al Hosani, Chairman of Bayanat. "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."

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

- Tareq Al Hosani, Chairman of Bayanat

What Bayanat will do post-IPO

  • It will be the holding company for Bayanat for Mapping and Surveying Services (which will be renamed Bayanat GIQ).
  • Bayanat's share capital is Dh200 million divided into 2 billion shares. A free zone enterprise, it is registered with Abu Dhabi Global Market.
  • On completion of the IPO, the paid up capital will be Dh257.14 million.

Bayanat will be the second private company to head for ADX, which is having an exceptional year in terms of IPOs and market volume growth. Plus, there is the close branding with FTSE, and the rollout of multiple capital market initiatives, including stock futures.

The hospital operator Burjeel, also privately held, has just listed on ADX after an eminently successful float of an 11 per cent stake to local investors. The stock was priced at Dh2.

We introduced a comprehensive business strategy that looks to broaden Bayanat’s established portfolio of solutions as well as enhance its technical capabilities

- Hasan Al Hosani, CEO of Bayanat

"G42 has multiple entities making up the conglomerate and there had been talk that one or two of them will head for a public listing," said an analyst. "That it's Bayanat should not be a surprise, the company has a track record, got big-ticket contracts and can show a steady cashflow. It will represent the new-generation of tech-driven businesses heading into UAE capital markets."