M42 Eyes IPO to Fuel Expansion in Dynamic Healthcare Landscape

Abu Dhabi-based technology-driven healthcare firm M42 is contemplating an initial public offering (IPO) in the near future as part of its accelerated expansion plans, according to statements from its Managing Director and Group Chief Executive, Hasan Al Nowais.

The potential IPO is seen as a means to bolster M42's growth trajectory and address the rising demands in the healthcare sector through strategic partnerships.

Al Nowais highlighted the company's openness to collaboration, acquisition, or partnership opportunities with other organizations to enhance its footprint, emphasizing that the current focus is on seamless business integration.

Established this year through the merger of the healthcare units of Mubadala and artificial intelligence company G42, M42 has already made significant strides in its global expansion strategy.

In April, the company acquired the Sweden-based dialysis provider Diaverum from Bridgepoint Group.

Al Nowais acknowledged the dynamic nature of the healthcare industry and expressed the company's commitment to continuous evolution, citing the acquisition as part of its global expansion strategy.

M42's considerations for an IPO align with a broader trend of increased listings in the MENA region, fueled by robust investor demand and a 44% annual growth in IPO volume on MENA bourses during the second quarter of 2023, according to global consultancy EY.

Notably, Presight AI, another G42 unit focused on data analytics and AI, garnered substantial interest and raised $496 million through its IPO in March.

With a focus on digital health and associated services, M42 recently unveiled its generative AI large language model, Med42.

Launched last month, Med42 has surpassed expectations in downloads and is open source, enhancing transparency and adaptability. Al Nowais emphasized the importance of feedback, transparency, and accountability, stating that M42 welcomes criticism to improve its technology and ensure data privacy compliance.

Globally, the healthcare industry is witnessing a technological transformation to meet consumer demands for on-demand and convenient services.

Generative AI, such as Med42, is gaining prominence for streamlining operations and improving customer engagement.

The global digital health market is expected to reach approximately $826 billion by 2030, with a compound annual growth rate of 18.6%, reflecting the increasing adoption of new technologies within the sector, as per data from Grand View Research.

Alvin R Cabral / The National