ADNOC and G42 Discuss Possible IPO for AI Technology Firm AIQ

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi AI company G42 are in early discussions about a possible IPO for their joint venture technology firm AIQ, which uses AI and machine

ADNOC and G42 Discuss Possible IPO for AI Technology Firm AIQ

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi-based artificial intelligence firm G42 are reportedly in early discussions about a potential flotation of their joint venture technology company, AIQ. Two sources with knowledge of the matter told Reuters that AIQ uses artificial intelligence and machine learning to optimize processes, improve planning, and increase profitability for ADNOC and the wider oil and gas industry. The company is being considered for a possible initial public offering at the end of the year, said the sources, who declined to be named as the matter is not public.

According to the sources, AIQ’s owners are currently discussing whether to position the deal as an international transaction or market it exclusively to domestic investors. They added that AIQ recently hired veteran investment banker Youssef Salem as chief financial officer. Salem worked at Moelis & Co for five years and held numerous positions at the US boutique bank until 2021. He was then appointed as an external senior advisor to the bank until April this year.

ADNOC supplies nearly 3% of global oil demand but declined to comment on these reports. Similarly, G42 did not immediately respond to a request for comment on whether they were considering floating their joint venture with ADNOC. It is worth noting that shares of artificial intelligence firms have helped lead an equity rally in the US market this year after US firm OpenAI snagged a multi-billion dollar investment from Microsoft Corp.

G42 is part of a business empire overseen by its chair Sheikh Tahnoon bin Zayed al-Nahyan who also serves as UAE’s national security adviser. He has been a foreign policy troubleshooter for his brother President Sheikh Mohammed bin Zayed al-Nahyan. Both ADNOC and G42 are based in Abu Dhabi.

The news comes after ADNOC began floating units in 2017. It listed its gas business in March after raising $2.5 billion from the IPO, which was the world’s biggest in the first quarter. It remains to be seen whether AIQ will follow suit, but it is clear that discussions about a potential flotation are ongoing.

The sources declined to comment further on the matter, but it is clear that this is an interesting development for both ADNOC and G42 as they explore new avenues for growth and investment. With artificial intelligence playing an increasingly important role in the oil and gas industry, AIQ could be well-positioned to benefit from this trend if it decides to go public later this year.