Cryptocurrency mining hardware vendor Phoenix Group Plc saw its shares soar as much as 50% in its Abu Dhabi debut following its initial public offering that raised Dh1.36 billion ($371 million).
Crypto Firm Phoenix Soars 50% After $371 Million Abu Dhabi IPO
The shares rose to 2.25 dirhams from the IPO price of 1.50 dirhams on Tuesday. The IPO, which was the first crypto-related listing in the Middle East and was 33 times oversubscribed, represented orders worth $12 billion.
The part of the public offering reserved for individual investors was 180 times more oversubscribed.
IPOs in the Persian Gulf have boomed in the past two years, fueled by high oil prices, government privatization programs and strong investor demand.
The boom is in sharp contrast to the global listing market, which remains under pressure due to aggressive interest rate hikes and concerns about economic growth.
International Holding Co., Abu Dhabi's largest conglomerate and controlled by a prominent member of the emirate's royal family. It purchased a 10% stake in Phoenix at the beginning of October.
The United Arab Emirates had sought to position itself as a hub for the crypto industry, but has slowly begun to tighten scrutiny as it works to ensure proper oversight of the sector and move off the Financial Action Task Force's “grey list.”
Dubai's crypto regulator fined 18 firms last month for compliance violations.
*This is not investment advice.