Top crypto mining firm Phoenix Group launched trading on the Abu Dhabi Securities Exchange (ADX) and has now recorded a 50% surge in shares in just the first day of the debut.
This comes after the company’s Initial Public Offering (IPO) that generated up to $370 million. Amazingly, Phoenix’s IPO is the first public listing of a company that is crypto-inclined in the Middle East.
The listing had initially been postponed by a day following the decision of the United Arab Emirates’ Ministry of Human Resources and Emiratisation to declare December 2nd to December 4th as public holiday for the private sector.
Phoenix IPO Was Oversubscribed
The company highlighted that by the end of the IPO, it was already 33 times oversubscribed by almost $12 billion worth of orders. A little over 900 million shares were made available at 1.50 dirhams per share, representing a 17.6% stake of the company’s share capital.
A significant percentage of its enthusiasts were retail investors who oversubscribed by 180 times and there were also professional investors who oversubscribed by 22 times.
It is worth noting that the UAE has been putting effort into protecting crypto investors from the risks associated with the ‘speculative’ assets and the IPO took cognizance of this fact.
Phoenix Shares Jump to $0.60
From the 1.50 dirhams price per share at IPO which is equivalent to $0.41, Phoenix shares rose to 2.20 dirhams. There was a slight dip which caused it to lose some of the amassed gains but the shares are currently trading at 2.03 dirhams, per data from TradingView. Hence, the company has an estimated post-IPO evaluation of approximately $2.5 billion.
Markedly, Phoenix regards the listing and a joint venture with the Abu Dhabi government, as a strategic move that demonstrates the fusion of public policy and private sector innovation.
Phoenix Group Pursues Environmental Sustainability
At the same time, the blockchain technology company reiterated its commitment to pursuing environmental sustainability in the region by developing the largest hydropower mining farm in Abu Dhabi.
“Anchored by four pillars — innovation in Bitcoin mining, renewable energy ventures, advanced manufacturing capabilities and strategic acquisitions — this IPO is more than an achievement; it’s a launching pad for Phoenix Group’s global aspirations,” Bijan Alizadehfard, the co-founder and Group CEO of Phoenix added.