Phoenix Group Initiates Trading on ADX, Bolstering Crypto Presence in Middle East
Summary:
Phoenix Group, a cryptocurrency mining entity, has started trading on the Abu Dhabi Securities Exchange, following a successful initial public offering (IPO) in November, where the firm raised approximately 1.3 billion dirhams ($371 million). This IPO marked one of the first for the crypto industry in the Middle East. Phoenix Group, primarily powered by renewable energy, plans to use the funds for future expansion and strategic acquisitions. Recently, International Holding Company purchased a 10% stake in Phoenix Group via a subsidiary.
Phoenix Group, a cryptocurrency mining corporation, has commenced trading on the Abu Dhabi Securities Exchange (ADX), marking one of the first instances of an industry firm going public in the Middle East. Data from the ADX indicates Phoenix Group's stock price initiated at 2.25 dirhams ($0.6) on December 5, representing a substantial surge, about 50%, from its initial public offering (IPO) price of 1.50 dirhams ($0.41) as documented in the Phoenix IPO prospectus.
A couple of weeks prior to this, Phoenix Group successfully wrapped up their IPO, with an oversubscription rate of 33 times on November 18, offloading approximately 907,323,529 stocks for roughly 1.3 billion dirhams ($371 million). The IPO segment assigned for retail traders experienced an oversubscription of 180 times. In contrast, professional investors oversubscribed the offer 22 times.
The proceeds from the IPO will be channeled towards bolstering Phoenix Group's future expansion and to yield positive returns for its investors, as declared by Phoenix Group's co-founder and CEO Bijan Alizadeh. The firm's aspirations are built on four cornerstones, including the advancement of Bitcoin mining, investment in renewable energy projects, developing manufacturing capabilities, and strategic acquisitions.
Phoenix Group, established in 2015 by Alizadeh and Munaf Ali, is a key player in the Middle East's blockchain sector, having partnerships with significant regional authorities. In August 2023, under the observance of Omani Minister of Transport Saeed Al Maawali and the chairman of the ADX, Hisham Malak, Phoenix inked a contract to set up a $300 million crypto mining farm in Oman.
A critical objective of Phoenix Group is to uphold sustainability in cryptocurrency mining, predominantly via the use of renewable sources. Alizadeh disclosed in September 2023 that approximately 95% of Phoenix's power is generated from renewables, chiefly hydropower.
In October 2023, the Abu Dhabi-based multinational conglomerate, International Holding Company, procured a 10% stake in the Phoenix Group via its subsidiary, International Tech Group.
Published At
12/5/2023 12:41:15 PM
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