Phoenix Group Plc, an Abu Dhabi-based Bitcoin mining and colocation service provider, has experienced a substantial 50% surge in its shares. The company recently announced its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), scheduled for December 5th. This marks a historic milestone as the first public listing of a crypto mining and blockchain technology company in the Middle East.
The IPO successfully raised 1.36 billion dirhams ($371 million), indicating a growing interest in financial innovations within the region. Phoenix chose the ADX exchange due to its “dynamic and rapidly growing financial market that aligns with Phoenix’s vision,” as stated by the company.
According to a Bloomberg report, Phoenix made its debut on the exchange on Tuesday, with shares initially priced at 2.25 dirhams. The first day of trading surpassed expectations, witnessing a remarkable 50% increase from the IPO price of 1.50 dirhams.
The IPO offer from Phoenix Group Plc witnessed an overwhelming response, being 33 times oversubscribed, according to the report. Notably, the oversubscription rate for the retail portion of the offering was an astonishing 180 times.
Munaf Ali, co-founder of Phoenix Group, expressed optimism about the journey ahead, stating, “We’re embarking on a journey that promises to enhance our technological footprint, driven by our commitment to digital finance and tech innovation. This is a pivotal moment for us to propel Phoenix Group into a new era of growth and global impact.”
Abu Dhabi’s latest IPO success underscores the unwavering investor appetite in the region. This robust interest in Middle East listings comes amid heightened geopolitical tensions and concerns about high interest rates and volatility. Interestingly, it stands in contrast to the more subdued appetite for IPOs in other global financial centers such as London and Hong Kong.
