The imminent IPO of Roundhouse AI (RAIH), the Singapore-based technology company specialising in artificial intelligence agent deployment, is not only a highlight for the London market, breaking the drought of new issues, but also shines a light on the City needing to bolster its tech / AI credentials. What is notable here is that the company is already lined up to be AI 2.0, something which allows it to leapfrog many peers in the AI space, with a unique new offering. While it may be somewhat glib to suggest that the company is set to provide the picks and shovels of the rush to AI, it is rather more accurate to use the analogy of the company itself that it is aiming to become the “Bloomberg” of autonomous AI agent activity. Indeed, given that one of the concerns regarding AI agents is that they could effectively live a life of their own, the need to deliver the goal of becoming a trusted data, scoring, and verification layer in its chosen ecosystem, is not just something which could offer significant returns for investors, but also address an urgent need and vast addressable market. Indeed, one could argue that going forward this could be a near infinitive market a technology progresses.
£1.6m Fundraise
Ahead of the due listing on AIM, transferring from Aquis, the company confirmed on October 12 that it had raised a total of £1.6m, and comes to market with a £14m market cap. One would expect London investors to grab this IPO with both hands, as it is set to be the kind of novel concept that usually originates Stateside, and almost inevitably gains a unicorn valuation – $1bn. While we are a long way from this to start off, a taste of what could be possible is highlighted by broker Clear Capital, who have slapped a 12 month share price target of £100m plus. This is a punchy call. However, it is likely to appear modest if the market appreciates the niche RAIH has entered. They include the strength and prestige of being an AIM- listed company. There is the first mover advantage this and the work already done in planting flags on the new terrain as far as the proposed architecture, which includes an aGDP Index to track economic activity by AI agents.
What is ironic about Roundhouse’s description of itself as the Bloomberg of autonomous AI agent activity is the way that Bloomberg itself is entering the fray, with its own protocol regarding verified financial data and semantic context with regard to enterprise AI agents.
Speed Of Product Development
The key going forward will be the speed of product development, and commercial take-up. This should be accelerated by the light that is shone on RHAI in the wake of this month’s IPO, and the dearth of serious UK listed AI plays. What will be supportive is the Clear Capital research note, given that the area Roundhouse is in does need to be demystified as far as the tech is concerned, as well as the size of the opportunity. Indeed, the biggest London stock market winners have tended to be blue sky offerings where there is a strong re-rate based on the market not being able to throw stones at a higher and higher valuation. RHAI could fit into this scenario.
Roundhouse Company Briefing And Clear Capital Broker Note: here