Abu Dhabi National Oil Company (ADNOC) and G42, an Abu Dhabi artificial intelligence company, are in preliminary discussions about potentially taking their joint venture technology firm AIQ public, two sources familiar with the matter told Reuters.
AIQ, which is 60% owned by ADNOC and 40% by G42, uses artificial intelligence and machine learning to optimize processes, improve planning and boost profitability for ADNOC and the wider oil and gas industry.
The sources, who requested anonymity as the matter is not public, said the company is being considered for an initial public offering later this year.
AIQ's owners are currently debating whether to structure the deal as an international offering or market it exclusively to domestic investors, according to the sources.
AIQ recently hired Youssef Salem as its chief financial officer. Salem previously spent five years at Moelis & Co until 2021, holding various roles at the U.S investment bank. He then served as an external senior advisor to Moelis until April 2022.
ADNOC declined to comment. G42, AIQ and Salem did not immediately respond to requests for comment.
Shares of AI companies have helped lead an equity rally in the U.S. market this year after OpenAI, the owner of ChatGPT chatbot that provides strikingly human-like responses to user queries, secured 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 the UAE's national security adviser and foreign policy troubleshooter for his brother, UAE President Sheikh Mohammed bin Zayed al-Nahyan.
ADNOC began floating its subsidiaries in 2017. It listed its gas business in March after raising $2.5 billion in the year's largest IPO so far.
