UAE Bitcoin Miner Phoenix Touts $370M IPO Raise

Retail investors have oversubscribed by 180 times, the company said.

Abu Dhabi-based bitcoin mining and colocation service provider Phoenix Group has raised $370 million in an initial public offering (IPO), the company said.

The company claimed in an announcement on Tuesday that the IPO was oversubscribed by 33 times, adding that a stronger demand came from retail investors, who oversubscribed by 180 times.

Phoenix started the public raise on Nov. 16 on the Abu Dhabi Securities Exchange (ADX) and closed the round on Nov. 18. The trading is set to begin on Dec. 4 under the ticker PHX.

It was offering to sell 907 million shares, accounting for 17.64% of its stakes, to raise 1.3 billion UAE Dirhams (about $370 million).

Phoenix Group boasts a combination of business segments including hosting and mining in the U.S., Canada, Europe, and the Middle East.

It also sells miners and hardware wallets targeting retail users and operates an Abu Dhabi-regulated crypto investment platform M2.

According to its IPO prospectus, Phoenix recorded a gross profit of $76 million for the first nine months this year on a revenue of $229 million. For the year 2022, it made a gross profit of $171 million with a gross margin of 22.6%.