TL;DR:
- Abu Dhabi’s ADNOC and AI company G42 is in early discussions regarding a potential IPO of their joint venture, AIQ.
- AIQ, owned 60% by ADNOC and 40% by G42, utilizes AI and machine learning to optimize processes in the oil and gas industry.
- The IPO is being considered for the end of the year, with discussions ongoing about whether to target international or domestic investors.
- AIQ has recently appointed Youssef Salem, a veteran investment banker, as its CFO.
- ADNOC, G42, AIQ, and Salem have not provided official comments on the matter.
Main AI News:
Abu Dhabi’s ADNOC and G42, an artificial intelligence company based in Abu Dhabi, are currently engaged in preliminary discussions regarding a potential initial public offering (IPO) of their joint venture technology firm, AIQ, according to anonymous sources familiar with the matter. AIQ, with 60% ownership by ADNOC and 40% by G42, leverages artificial intelligence and machine learning to optimize operations, enhance planning, and drive profitability for both ADNOC and the broader oil and gas sector.
Although not yet public, insiders have revealed that the company is being evaluated for a potential IPO toward the end of this year. The sources emphasized that, due to the sensitive nature of the subject, they wished to remain anonymous. Furthermore, discussions are underway among AIQ’s stakeholders to determine whether the offering should be positioned as an international transaction or exclusively targeted toward domestic investors.
In a recent strategic move, AIQ appointed Youssef Salem, a highly experienced investment banker, as its Chief Financial Officer. Salem, who previously served at Moelis & Co for five years and held various positions at the renowned U.S. boutique bank until 2021, then assumed the role of a senior external advisor to the institution until April of this year.
ADNOC, a key player supplying nearly 3% of global oil demand, and G42, which benefits from the support of Abu Dhabi state fund Mubadala Investment Co, declined to comment on the matter. Similarly, AIQ and Salem have yet to respond to requests for official statements.
The surge in the U.S. equity market this year owes much to the success of artificial intelligence companies, with their shares playing a leading role. This upward trend was reinforced by OpenAI, the entity behind ChatGPT—a chatbot renowned for providing remarkably human-like responses—securing a multi-billion dollar investment from Microsoft Corp.
G42, overseen by Sheikh Tahnoon bin Zayed al-Nahyan, who serves as its chair, as well as the national security adviser of the UAE, has become an integral part of a vast business empire. Sheikh Tahnoon bin Zayed al-Nahyan has also played a crucial role as a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.
It is worth noting that ADNOC initiated the process of floating units in 2017. In March, the company successfully listed its gas business, raising an impressive $2.5 billion through the IPO. This particular offering stood as the world’s largest in the first quarter, further highlighting ADNOC’s commitment to exploring new avenues for growth and investment.
Conclusion:
The potential IPO of ADNOC and G42’s joint venture, AIQ, signifies the growing importance of artificial intelligence and machine learning in the oil and gas industry. This move highlights the increasing recognition of technology-driven solutions to optimize operations and enhance profitability. The interest in AIQ’s IPO also reflects the market’s appetite for innovative AI companies, as demonstrated by the success of firms like OpenAI. The appointment of a seasoned investment banker as AIQ’s CFO further demonstrates a commitment to strengthening the company’s financial management. Overall, this development showcases the significant potential for AI-driven technologies in the market and underscores the continuous evolution of the energy industry.
