In recent years, maturing Middle Eastern stock markets have fostered a booming Initial Public Offering (IPO) scene in the region, helping to establish venues like the Abi Dhabi Securities Exchange (ADX) as an increasingly viable option for firms looking to go public.
Marking the first crypto IPO in the Middle East, Pheonix Group was listed to trade on ADX on Tuesday, November 5.
Pheonix’s $371M IPO marks an important milestone for the United Arab Emirates (UAE) crypto and Web3 industry, where authorities in Abu Dhabi and Dubai have sought to attract businesses with progressive regulations, investment opportunities, and government-backed incentives for startups.
The group actively operates mining facilities in the U..S, Canada, Europe, and the Middle East, constituting its core business. Simultaneously, Phoenix Store actively sells mining equipment and hardware wallets to businesses and individuals in the region.
In November, the crypto conglomerate also expanded into the market for crypto exchange services, launching the digital asset trading and investment platform M2.
In an oversubscribed IPO that priced Phoenix stock at AED 1.50 per share, the company raised $371M from a 15% stake.
During the initial hours of trading on Tuesday, December 5, Phoenix emerged as the most traded stock on the ADX, with shares in the company surging to highs of AED 2.25.
The company said it intends to use proceeds from the IPO to invest in its global expansion for the next 2-3 years. It then plans to adopt an active dividend policy and start distributing profits to investors.
Since its inception over a decade ago, the global crypto sector has been characterized by venture capital-funded startups, with public companies few and far between.
However, as the industry matures and major players in the space weigh the pros and cons of going public, crypto IPOs are occurring more frequently.
Meanwhile, a growing number of crypto exchanges are also eying stock market listings. In recent weeks, Kraken, Bithumb, and Blockchain .com have all been subject to IPO rumors.