The share value of Phoenix Group showed an increase of nearly 50% on the first day of trading on the Abu Dhabi Securities Exchange (ADX) after its initial public offering. The price, initially 1.50 dirhams per share, rose to 2.20 dirhams or $0.60 in early trading.
Phoenix’s IPO represents the first public offering of a cryptocurrency-related company in the Middle East and indicates demand that is 33 times higher than expected. The company offered 907,323,529 shares at a price of 1.50 dirhams per share, representing 17.6% of the company’s capital, and the post-IPO value of the company is estimated to be around $2.5 billion.
Following the announcement of official holidays for the private sector by the United Arab Emirates Ministry of Human Resources and Emiratisation from December 2nd to December 4th, the listing was postponed by one day.
Phoenix Group highlighted its strategic initiatives, including a joint venture with the Abu Dhabi government, which focuses on the combination of public policy and private sector innovation. They also emphasized their commitment to environmental sustainability, such as the launch of the largest hydroelectric mining farm in Abu Dhabi.
International Holding Company, the largest holding company in Abu Dhabi and managed by the royal family of the Emirates, made a significant move by acquiring 10% of Phoenix Group shares in early October. The Central Bank of the UAE published a guide summarizing the risks associated with crypto assets and service providers in May. Dubai, on the other hand, established a new agency responsible for regulating crypto assets in March and the approach adopted by regulators in the region was praised by many major crypto companies.