Bitcoin miner Phoenix Group’s $370m IPO overwhelms with massive subscription rate
Phoenix Group, a major bitcoin mining service provider based in Abu Dhabi, recently announced the successful completion of its Initial Public Offering (IPO), securing a substantial $370 million in capital.
In a statement released this week, Phoenix Group revealed the IPO, initiated on the Abu Dhabi Securities Exchange (ADX), witnessed an overwhelming response, with subscriptions exceeding the initial offering price 33 times over.
Notably, the enthusiasm among retail investors was particularly striking, with subscriptions surpassing expectations by 180 times.
Phoenix Group IPO details
The public offering, which commenced on Nov. 16 and concluded on Nov. 18, involved the sale of 907 million shares. This represented 17.64% of the company’s stakes, with the aim of raising 1.3 billion UAE dirhams, approximately $370 million. The shares are scheduled to start trading on Dec. 4 under the ticker PHX.
Phoenix Group’s operations span a range of sectors within the crypto industry. The company has established itself in various global markets, including the U.S., Canada, Europe and the Middle East, focusing on hosting services and Bitcoin mining. Additionally, Phoenix Group has ventured into retail-oriented businesses, selling miners and hardware wallets, and operates M2, a crypto investment platform regulated in Abu Dhabi.
Reflecting on its financial achievements, Phoenix Group disclosed in its IPO prospectus a gross profit of $76 million for the first nine months of the current year, generated from a revenue of $229 million.
2022 proved to be particularly fruitful for the company, with a gross profit of $171 million and a gross margin of 22.6%.
