Crypto Mining Firm Phoenix Shares Surges 50% on Abu Dhabi Debut

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Sujha Sundararajan

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Sujha Sundararajan

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December 6, 2023 02:59 EST

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Phoenix Group Plc, an Abu Dhabi-based Bitcoin mining and colocation service provider, has reported a significant 50% surge in shares.

The company announced Sunday, its initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX), slated for December 5th. The event marked the first public listing of a crypto mining and blockchain technology company in the Middle East.

The IPO raised 1.36 billion dirhams ($371 million), indicating a growing appetite for financial innovations in the region. Phoenix opted for ADX exchange, given its “dynamic and rapidly growing financial market that aligns with Phoenix’s vision,” the company said.

Per a Bloomberg report, Phoenix had its initial listing on the exchange on Tuesday with shares priced at 2.25 dirhams. The trading on the first day exceeded expectations, soaring 50% from the IPO price of 1.50 dirhams.

Further, the IPO offer was 33 times oversubscribed, said the report, adding that for the retail portion of the offering, the oversubscription rate was 180 times.

“We’re embarking on a journey that promises to enhance our technological footprint, driven by our commitment to digital finance and tech innovation,” said Munaf Ali, co-founder of Phoenix Group.

“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 record proves that investor appetite is unwavering. The underlying appetite for Middle East listings comes at a time when regional geopolitical tensions are high and as investors fear high interest rates and volatility. Also, it stands in contrast to the subdued appetite for IPOs in regions like London and Hong Kong.