UAE Crypto mining Group Phoenix shares rise 50% on first day of trading

UAE Crypto mining Group Phoenix shares rise 50% on first day of trading

UAE based crypto mining group, Phoenix share price soared 50% as it launched on Abu Dhabi Exchange (ADX). Its share price opened at 2.25 AED on Tuesday December 5th, up from its IPO price of 1.5 AED. This is the first crypto IPO and listing in the MENA region.

The IPO raised $371 million and was oversubscribed 33 times with retail investors leading with over subscription of 180 times.

International Holding Co, Abu Dhabi’s largest conglomerate controlled by a key member of the emirate’s royal family, bought a 10% stake in Phoenix in early October.

Phoenix is also closely affiliated with the recently launched M2 regulated crypto exchange out of Abu Dhabi.

In August 2023 Oman’s Green Data City and Abu Dhabi’s Phoenix Group signed an agreement to develop a 150MW crypto-mining farm in Oman. The new farm will be set up in Green Data City was noted that it will be operational by Q2 2024, becoming one of the largest crypto-mining data centers in the region.

Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said: “The listing of Phoenix Group on our exchange not only adds to the diversity of products on our market but also signals the growing interest in the digital economy and financial technology investments in Abu Dhabi and the UAE”.

“We are proud to continue to be the exchange market of choice for tech-driven issuers and investors, as we remain committed to our mission of connecting opportunity and providing a world-class exchange market experience for all our stakeholders,” he added.

Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group PLC, stated: “Phoenix Group’s ADX listing is a milestone for diversified technology and innovation. Our IPO symbolises a leap forward for Abu Dhabi as a nexus of digital transformation across various sectors. By blending advanced blockchain applications, strategic tech partnerships, and market-leading digital asset services, we’re proud to be part of Abu Dhabi’s Economic Vision 2030.”

Munaf Ali, Co-Founder & Group MD of Phoenix Group PLC stated: “The ADX listing of Phoenix Group is a testament to our multifaceted technological prowess. From spearheading blockchain advancements to shaping the landscape of digital finance, our presence on the exchange is a narrative of cross-industry tech innovation. As a preferred partner for government-led tech initiatives, we’re championing a future where the Abu Dhabi stands as a global beacon for sustainable and comprehensive digital economy growth.” 

This article updated November 6th 2023

Phoenix Crypto mining group to float $370 million worth of stock in IPO on November 16th

Phoenix Crypto mining group to float $370 million worth of stock in IPO on November 16th

As per a news article, The Abu Dhabi Securities Exchange is preparing for Phoenix Group, a datacenter crypto mining company, upcoming IPO schedule to start on November 16th 2023 for two days, where the company will float $370 million worth of stocks equivalent to 17.64 per cent of it stock.

Phoenix Group is set to offer each share at the price of 0.41 cents (1.5 AED).  Retail investors are required to invest a minimum of $1360 (AED5,000) to participate in the IPO, which allocates 6.67% (or 60.48 million shares) to them. Analysts view Phoenix as offering local investors their first experience with growth opportunities centered on cryptocurrency.

Recently, International Holding Company (IHC) of UAE purchased a 10% stake in Phoenix Group. The company manages the ‘Citadel Project’, which is the largest crypto-mining facility in Abu Dhabi. Most recently Phoenix Group partnered with M2 to offer crypto yield product.

“The Phoenix IPO represents the first opportunity for investors to gain exposure to the crypto and blockchain  through a professionally managed and licensed entity,” said Sameer Lakhani, Managing Director at Global Capital Partners. “It signals to investors the role that ADX and the UAE are carving out in this space as a result of their superior regulatory rules in the crypto domain.

In an interview with Entrepreneur magazine, .Munaf Ali, co-founder and Managing Director of Phoenix Group stated, “I aim to create an organization that consistently delivers unprecedented returns to our stakeholders, shareholders, investors, and the dedicated team that has been our backbone throughout our journey. By striving for excellence and innovation, we will position Phoenix as a frontrunner in the market, gaining recognition and respect on a global scale.

Phoenix Group invested in a 250 MW data mining facility in Abu Dhabi, as well as expanded to Oman with a 150 MW facility with Green Data City.

As for sales, they remained robust in 2023, reflecting Phoenix’s agility and commitment to market expansion,” the company notes. Its trading operations fetched $161 million in 2021, and last year, that shot up to $715 million, helped by arrangements with the likes of Bitmain and MicroBT.

The GCC region has become a very attractive location for crypto mining firms.

UAE ADX Exchange utilizes HSBC Blockchain for digital securities

UAE ADX Exchange utilizes HSBC Blockchain for digital securities

UAE ADX (Abu Dhabi Securities Exchange)and HSBC Bank Middle East Limited have announced that they will develop digital fixed income securities leveraging the investment product knowledge of ADX and HSBC’s blockchain capabilities and investment banking expertise.

Abdulla Salem Alnuaimi, Chief Executive Officer of ADX exchange, said, “We are delighted to collaborate with HSBC in developing a digital fixed income product. We believe that digital assets will grow in significance in the future and ADX intends to be at the forefront of this innovation. The project reaffirms our commitment to ADX’s digital transformation journey and complements our efforts to continue providing innovative products to our expanding investor base. ADX exchange and HSBC will explore a framework that enables digital assets, such as digital bonds, to be made available on HSBC Orion, the bank’s digital assets platform, and to be listed on ADX.”

Mohamed Al Marzouqi, Chief Executive Officer, UAE, HSBC, said, “HSBC is digitizing at scale by adopting new technologies like blockchain to enable the issuance of digital assets, hold them in custody and make them available for trading. This capability will help accelerate efficiency and drive new and innovative opportunities for investors. HSBC and ADX are working together to leverage HSBC Orion, our proprietary digital assets platform, and use our collective capabilities in capital markets and custody, to bring this exciting development to the market.”

Digital bonds are financial instruments that are created and managed using blockchain and smart contract technology to create efficiencies in capital markets. With the use of blockchain technology, a broader range of assets such as equity, fixed income, real estate and private equity can be tokenised. This will enable ownership of these assets for a broader range of investors, making securities markets more accessible.