Abu Dhabi’s Phoenix Group Secures $370 Million in IPO

Abu Dhabi-based Bitcoin mining firm Phoenix Group has made headlines with a triumphant $370 million fundraising through its recent initial public offering (IPO). The company shared this achievement on November 21, revealing a staggering oversubscription rate of 33 times during the IPO process, which commenced on November 16 and concluded on November 18.

The IPO, listed on the Abu Dhabi Securities Exchange (ADX), witnessed exceptional demand, particularly from retail investors, boasting an extraordinary oversubscription rate of 180 times. The company is gearing up for trading, scheduled to kick off on December 4, with its shares trading under the symbol PHX. Phoenix Group issued 907 million shares, constituting 17.64% of its stakes, aiming to raise 1.3 billion UAE Dirhams, approximately $370 million.

Bijan Alizadehfard, Phoenix Group’s Co-Founder and CEO, expressed enthusiasm, stating, “the overwhelming interest during the offer period is a powerful endorsement of our pioneering role in cryptocurrency mining and blockchain.” Alizadehfard sees the high oversubscription as a testament to investor confidence in Phoenix Group’s vision and potential.

Phoenix Group operates globally, involved in hosting and mining activities across the U.S., Canada, Europe, and the Middle East. In addition to core services, the company sells miners and hardware wallets to retail users and manages the Abu Dhabi-regulated crypto investment platform M2.

The IPO prospectus provides insight into Phoenix Group’s financial performance. For the first nine months of 2023, the company reported a gross profit of $76 million on revenue of $229 million. In 2022, Phoenix achieved a gross profit of $171 million, with a robust gross margin of 22.6%.

Phoenix Group’s successful IPO highlights the surging interest in cryptocurrency-related businesses, solidifying its position as a key player in the Bitcoin mining and colocation sector. As Phoenix enters the public trading sphere, it is poised to make substantial contributions to the dynamic landscape of the crypto industry.

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