Abu Dhabi’s G42 sells 2% stake in Presight AI

Abu Dhabi artificial intelligence powerhouse G42 is taking advantage of the soaring share price of its data analytics firm Presight AI to sell a 2% stake worth about $100 million, amid a growing trend of raising funds through secondary share sales in the emirate.

G42 will retain 68.5% ownership in the firm after the sold-out offer to institutional investors closes today, Bloomberg reports. Presight’s shares, listed on the Abu Dhabi Stock Exchange, have risen more than 65% over the past year, closing on Wednesday at 3.47 dirhams ($0.94).

While the sale will boost G42’s coffers, the sell-down is largely aimed at increasing Presight’s free floating shares, which will give it a higher chance of inclusion in broader indexes such as the FTSE Emerging Market Index, which have greater exposure to international investors. 

It comes as Abu Dhabi sovereign wealth fund Mubadala, which backs G42, is also considering selling at least part of its $1 billion stake in Dubai-listed telecom operator Du, Bloomberg reports.

Mubadala holds around 10% of Du through Mamoura Diversified Global Holding, after cutting its stake in 2019 by selling 10% — then worth about $630 million — to Du’s largest shareholder, the federal Emirates Investment Authority, which holds just over 50%.