Phoenix Group’s Shares Soar in Abu Dhabi Debut Following $371M IPO
Phoenix Group, a prominent cryptocurrency mining firm, has initiated trading on the Abu Dhabi Securities Exchange (ADX), marking its entry as one of the first publicly traded crypto industry companies in the Middle East.
The inaugural trading of Phoenix Group’s stock (PHX) commenced at an opening price of 2.25 dirhams (AED), equivalent to $0.6, on December 5, based on the ADX exchange data. Following its initial public offering (IPO) priced at 1.50 AED ($0.41) as outlined in the Phoenix IPO prospectus, PHX shares have experienced a remarkable 50% surge.
Phoenix Group’s successful public listing follows the closure of its heavily oversubscribed IPO on November 18, which saw the sale of 907,323,529 shares, raising approximately 1.3 billion AED or $371 million. The IPO drew immense interest, with the retail investor portion being oversubscribed 180 times and the professional investor segment 22 times.
With the funds raised from the IPO, Phoenix Group intends to invest in its future expansion and generate favorable returns for its investors. Co-founder and CEO Bijan Alizadeh outlined the company’s strategy, emphasizing four key areas: innovation in Bitcoin mining, renewable energy projects, advanced manufacturing, and strategic acquisitions.
Phoenix, established in 2015 by Alizadeh and Munaf Ali, stands as a significant player in the Middle East’s blockchain sector, collaborating closely with regional authorities. In a notable move in August 2023, Phoenix inked a deal to establish a $300 million crypto mining farm in Oman, witnessed by Oman’s Transport Minister Saeed Al Maawali and Hisham Malak, Chairman of the Abu Dhabi Stock Exchange.
A critical focus for Phoenix is its commitment to environmentally sustainable practices in cryptocurrency mining, predominantly using renewable energy sources. As of September 2023, Alizadeh highlighted that 95% of Phoenix’s energy consumption is sourced from renewable energy, primarily hydropower.
In another strategic development, International Holding Company, an Abu Dhabi-based conglomerate, acquired a 10% stake in Phoenix Group in October 2023 through its subsidiary, International Tech Group.
