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

UAE based Phoenix Group, a cryptocurrency mining technology and blockchain entity, which launched the first crypto mining entity IPO in UAE on November 16th, has announced a resounding success with an impressive 33 time over subscription led by retail investors.

As per the press release, this success demonstrates robust investor interest.

The company’s offer of 907,323,529 shares witnessed overwhelming demand, particularly from retail investors who oversubscribed by 180 times. Professional investors also showed strong support, contributing to a 22-fold oversubscription, underscoring the strength and potential of Phoenix Group.

Bijan Alizadehfard, Co-Founder & Group CEO of Phoenix Group PLC, stated, “The overwhelming interest during the offer period is a powerful endorsement 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 place in our vision and the potential they see in Phoenix Group.”

Munaf Ali, Co-Founder & Group MD of Phoenix Group PLC, commented on this milestone, “The exceptional oversubscription during our offer period is a clear indicator of the market’s endorsement of Phoenix Group as a leader in Cryptocurrency Mining and Blockchain Technology. As we prepare for our listing on ADX on December 4, 2023, under the trading symbol PHX, we are more committed than ever to enhancing our mining capabilities and driving tech innovations forward.”

Prior to the IPO, Phoenix Group sold 10% of its company shares to Abu Dhabi conglomerate International Holding Company’s subsidiary. This was seen as a positive stance towards Phoenix Group.

The successful close of the offer period paves the way for Phoenix Group’s anticipated listing on the ADX, scheduled for December 4, 2023, under the trading symbol PHX.

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 based Phoenix Group has sold 10% of its company shares to Abu Dhabi conglomerate International Holding Company’s subsidiary.

IHC’s wholly owned unit, International Tech Group, has entered into a definitive agreement to buy 10% stake in Phoenix Group, according to a disclosure on the Abu Dhabi Securities Exchange (ADX).

The company is currently completing all required procedures and obtaining regulatory approvals to complete the transaction, the disclosure noted.

This announcement comes at the heels of an agreement between Muscat-based Green Data City and Phoenix Group to develop a $300 million crypto-mining farm in Oman. The 150-megawatt farm, which will be one of the largest crypto-mining data centers in the region, will be installed in Green Data City, the entities said in a joint statement. The farm is expected to be fully operational by the second quarter of next year.

Pheonix Group had announced on several occasions that it was seeking to have an IPO ( Initial Public Offering). With the 10% acquisition by IHC this could well put the IPO on hold.

Phoenix provides crypto-mining equipment distribution and hosting services. The company has a portfolio of mining facilities in the Middle East, Europe, the US, and Canada.

In the first half (H1) of 2023, IHC  generated net profits valued at AED 10.39 billion, up from AED 10.35 billion during the same period a year earlier.

This is a reflection of Abu Dhabi’s government interest in crypto mining. Prior to this Marathon Digital a digital asset mining entity announced in January 27th 2022, that it had entered into a shareholder’s agreement with FSI ( FS Innovation), the BTC mining subsidiary of UAE ADQ a sovereign fund,  to form an Abu Dhabi, ( ADGM (Abu Dhabi Global Markets) based company.

Marathong Digital will use fossil fule offset or nuclear to power bitcoin mining operation.