ADNOC and G42 to IPO joint venture AIQ, unleashing AI potential

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi-based artificial intelligence firm G42 are engaged in early-stage talks regarding the potential initial public offering (IPO) of their joint venture technology company AIQ, according to sources familiar with the matter. AIQ, which is majority-owned by ADNOC with a 60% stake and G42 with a 40% stake, specializes in leveraging artificial intelligence and machine learning to optimize processes, enhance planning, and drive profitability in the oil and gas industry.

The discussions suggest that ADNOC and G42 are considering launching the IPO for AIQ by the end of this year, although the sources emphasize that the matter has not been made public and prefer to remain anonymous. The owners of AIQ are currently exploring whether to position the IPO as an international offering or focus exclusively on domestic investors.

To strengthen its leadership team, AIQ recently hired Youssef Salem as its Chief Financial Officer. Salem, a veteran investment banker, previously worked at Moelis & Co for five years and held various positions at the U.S. boutique bank until 2021. He then served as an external senior advisor to the bank until April of this year.

While ADNOC, G42, AIQ, and Salem have not provided an immediate response to requests for comment, it is worth noting that shares of AI companies have played a significant role in the U.S. equity market rally this year. The investment made by Microsoft Corp in OpenAI, the company behind ChatGPT, a chatbot renowned for its human-like responses, has boosted investor interest in the artificial intelligence sector.

G42, led by Sheikh Tahnoon bin Zayed al-Nahyan, who serves as the chair and also holds positions as the UAE’s national security adviser and a foreign policy troubleshooter, is backed by Abu Dhabi state fund Mubadala Investment Co.

ADNOC has previously embarked on the path of public offerings, with the listing of its gas business in March 2023. The company raised $2.5 billion through the IPO, making it the world’s largest IPO in the first quarter of the year.