Abu Dhabi’s Phoenix Group lands $370M In crypto IPO

Abu Dhabi’s Phoenix Group, a leading player in crypto-currency mining, blockchain and colocation services, has achieved a remarkable feat by raising $370 million in its initial public offering (IPO).

The company announced this success in a press release on Tuesday, Nov 21, stating that the IPO was met with an enormous demand, exceeding the supply by 33 times. The interest from retail investors was especially notable, with a staggering oversubscription rate of 180 times.

The IPO process, which started on November 16 on the Abu Dhabi Securities Exchange (ADX), ended on November 18. The company is now getting ready for trading to begin on December 4, with its shares listed under the ticker PHX. Phoenix Group offered 907 million shares during the IPO, representing 17.64% of its ownership, with the goal of raising 1.3 billion UAE Dirhams, equivalent to about $370 million.

Bijan Alizadehfard, Co-Founder and CEO of Phoenix Group PLC, commented that “the immense interest during the offer period is a strong validation of our pioneering role in cryptocurrency mining and blockchain. The anticipation leading up to our listing on ADX, as reflected by the oversubscription, is a testament to the confidence investors have in our vision and the potential they see in Phoenix Group.”

Phoenix Group: A Diversified Crypto Business

Phoenix Group operates in various business segments, offering hosting and mining services across the U.S., Canada, Europe, and the Middle East. Besides its core services, the company sells miners and hardware wallets to retail users. Moreover, it runs the Abu Dhabi-regulated crypto investment platform M2.

The IPO prospectus reveals Phoenix Group’s financial performance. For the first nine months of this year, the company reported a gross profit of $76 million on revenue of $229 million. For 2022, Phoenix expects a gross profit of $171 million, with a healthy gross margin of 22.6%.

Phoenix Group’s IPO success highlights the growing interest in cryptocurrency-related businesses and establishes the company as a key player in the Bitcoin mining and colocation sector. As it joins the public trading arena, Phoenix aims to contribute significantly to the evolving landscape of the crypto industry.

Related Reading| Mastercard Strategic Move: Partnering With Feedzai To Bolster Cryptocurrency Fraud

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply