Silver Lake-Backed Abu Dhabi AI Firm Bayanat Quadruples After IPO

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(Bloomberg) — Bayanat AI Plc more than quadrupled in its Abu Dhabi trading debut, after raising $171 million in an initial public offering backed by private equity firm Silver Lake and the United Arab Emirates’ most valuable company. 

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Shares in the geospatial and data analytics firm owned by Abu Dhabi’s G42 rose as much as 309% to 4.5 dirhams on Monday, valuing it at 9 billion dirhams ($2.5 billion). Bayanat sold shares at 1.10 dirhams apiece in the IPO, a rare technology listing in the energy-rich Middle East. 

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The IPO drew orders worth 57.5 billion dirhams, the latest sign of strong investor demand for Gulf listings. Artificial intelligence firm G42, which has operations spanning from energy to healthcare, holds 77% in Bayanat after the listing. Silver Lake and Abu Dhabi’s International Holding Co. were among cornerstone investors.

G42 and IHC — the UAE’s most valuable listed company that’s worth $200 billion — are part of a business empire overseen by UAE national security adviser Sheikh Tahnoon Bin Zayed. Silver Lake bought a stake in G42 last year, and the firm also counts Abu Dhabi wealth fund Mubadala Investment Co. as an investor.

Bayanat last year started trials for the Middle East’s first driverless ride-sharing service in Abu Dhabi. The firm reported revenue of 490.6 million dirhams and a 225.9 million-dirham profit for the nine months to Sept. — more than double from a year ago.