Phoenix Group, a cryptocurrency mining company, has made its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), with the stock opening at $0.6 and witnessing a 50% rise following the IPO.
The opening price of The Phoenix Group stock on December 5 was 2.25 dirhams ($0.6), according to data from the ADX exchange. According to the Phoenix IPO prospectus, the price has increased by as much as 50% since its initial public offering (IPO) price of 1.50 dirhams ($0.41).
A few weeks before the public offering, on November 18, Phoenix Group sold 907,323,529 shares for approximately 1.3 billion dirhams ($371 million), an amount that was 33 times oversubscribed and thus effectively completed.
The retail investor portion of the initial public offering was 180 times oversubscribed, whereas the offering was 22 times oversubscribed by professional investors.
The cryptocurrency miner intends to finance its future expansion and provide investors with positive returns with the IPO proceeds.
The four pillars upon which Phoenix Group’s ambitions rest, according to CEO and co-founder Bijan Alizadeh, are “innovation in Bitcoin mining, renewable energy ventures, advanced manufacturing capabilities, and strategic acquisitions.”
Established in 2015 by Alizadeh and Munaf Ali, Phoenix is a prominent entity within the blockchain sector of the Middle East, engaging in strategic partnerships with key regional governing bodies.
In August 2023, in the presence of Abu Dhabi Stock Exchange chairman Hisham Malak and Omani Minister of Transport Saeed Al Maawali, Phoenix inked an agreement to construct a $300 million cryptocurrency mining farm in Oman.
Phoenix’s commitment to sustainability in cryptocurrency mining, or using renewable energy sources for cryptocurrency mining, is a central tenet of its mission. In September 2023, Alizadeh stated that approximately 95% of Phoenix’s electricity is derived from renewable sources, predominantly hydropower.
International Holding Company, an Abu Dhabi conglomerate, acquired a 10% stake in Phoenix Group in October 2023 via its subsidiary International Tech Group.
