Multinational cryptocurrency and blockchain mining giant Phoenix Group has reached a major milestone in its initial public offering (IPO).
According to a press release, the mining company managed to close its initial public offering after being oversubscribed by investors 33 times, indicating strong interest in its global mining operations.
More specifically, Phoenix Group PLC said its offering of 907,323,529 shares was oversubscribed by retail investors by 180 times.
Professional and institutional investors followed the news closely and subscribed more than 22 times, highlighting the blockchain company's strong brand presence in the emerging Web3 ecosystem.
The offering price for Phoenix Group shares was set at AED 1.50 per share as the company sought to raise AED 1.36 billion (or approximately $368 million). This share offering categorically vests 17.64% stake in the company to willing investors who participated in the IPO fundraising round.
Phoenix Group's IPO, launched on November 16 and closed on November 18, represents one of the shortest IPOs in the cryptocurrency sector and highlights the growing attractiveness of blockchain-based companies following the return of the cryptocurrency market.
The most popular cryptocurrencies such as Bitcoin and Ethereum are currently showing positive upward momentum thanks to strong interest from traditional financial institutions.
These leading cryptocurrency assets are being explored as ETF vehicles to attract mainstream investors to the cryptocurrency scene.
In recent months, asset managers such as BlackRock, Valkyrie, Grayscale, and Ark Invest, among others, have filed for spot exchange-traded funds (ETFs) for Bitcoin and Ethereum with the U.S. Securities and Exchange Commission (SEC).
Thanks to strong interest from the traditional financial scene, the cryptocurrency market caught fire and the price of Bitcoin has since surpassed the $35,000 mark. This rally in recent weeks has brought the cryptocurrency market closer to reaching 50% of its 2021 peak.
While cryptocurrency growth has remained somewhat stagnant in North America, the Middle East has seen a decentralized cryptocurrency-based economy.
For example, the Dubai Virtual Asset Regulatory Authority (VARA) has provided a clear regulatory framework that allows cryptocurrency companies to operate in compliance with the region's financial regulations.
This has pushed many American companies, such as Binance, to hop on the cryptocurrency spaceship and start their own businesses focused on the Middle East economy.
Justifying the strong interest in its services in the region, Phoenix Group co-founder and CEO Bijan Alizadevard noted that the rapid closing of the IPO window is evidence of their strong support for blockchain technology and cryptocurrency mining.
PHX is scheduled to list on the Abu Dhabi Stock Exchange (ADX) on December 4, 2023.
Founded in 2016, Phoenix Group PLC is a leading cryptocurrency mining company. It operates 725 megawatts of global mining operations and is present in various countries such as Canada, North America, United Arab Emirates and many other countries.