Multinational crypto mining and blockchain giant Phoenix Group has achieved a significant milestone in its initial public offering (IPO) raise.
According to a press release, the mining company was able to close its IPO raise after investors oversubscribed 33 times, pointing to a strong interest in its global mining activities.
“Phoenix Group, a crypto miner, announces that their initial share sale in the UAE was oversubscribed by 33 times. This indicates high investor interest and confidence in the company’s mining operations.”
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Providing more details, Phoenix Group PLC said its 907,323,529 shares offering was further oversubscribed by 180 times by retail investors.
Professional and institutional investors followed closely and oversubscribed 22-fold, underscoring the blockchain company’s strong brand presence in the fledgling Web3 ecosystem.
Phoenix Group’s share offering went for 1.50 dirhams per share as the company sought to raise 1.36 billion dirhams (or about $368 million). This share offering categorically grants a 17.64% stake of the company’s share capital to willing investors who participated in the IPO fund-raising round.
Kickstarted on November 16 and concluded on November 18, Phoenix Group’s IPO raise represents one of the shortest in the crypto space and underscores the growing appeal blockchain-backed firms enjoy following a renaissance in the crypto market.
Prominent cryptocurrencies such as Bitcoin and Ethereum are currently driving positive bullish momentum due to strong interest from traditional financial institutions.
These top crypto assets are being explored as ETF vehicles to onboard mainstream investors into the crypto landscape.
Asset management firms like BlackRock, Valkyrie, Grayscale, and Ark Invest, amongst others, have filed for spot Bitcoin and Ethereum exchange-traded fund (ETF) applications with the US Securities and Exchange Commission (SEC) in recent months.
With strong interest from the traditional financial landscape, the crypto market is catching some tailwinds, and Bitcoin has roared above the $35,000 price figure ever since. This surge has brought the crypto market closer to reaching 50% of its 2021 peak in recent weeks.
PHX Set for ADX Listing in December
While crypto growth has somewhat stalled in North America, the Middle Eastern landscape has embraced the decentralized economy enabled by crypto assets.
For instance, Dubai’s Virtual Asset Regulatory Authority (VARA) has provided clear regulatory frameworks that enable crypto-facing businesses to operate in sync with stated financial rules in the region.
This has led several US companies like Binance operating in the crypto space to jump ship and launch their operations targeting the Middle Eastern economy.
Making a case for the strong interest of its services in the region, co-founder and Group CEO of Phoenix Group Bijan Alizadehfard noted that the rapid close of its IPO window is a testament to the strong endorsement they enjoy in blockchain tech and crypto mining.
The PHX listing is set for December 4, 2023, on the Abu Dhabi Securities Exchange (ADX).
Launched in 2016, Phoenix Group PLC is a leading crypto-mining operation. It manages 725MW global mining facilities, with a presence spanning several countries like Canada, North America, the UAE, and several others.
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