Iris Energy sets IPO hard cap at over $223.3 million

Australian mining company Iris Energy plans to raise approximately up to $223.3 million in an initial public offering (IPO), according to an updated filing with the SEC.

In the previously filed form, Iris Energy stated the expected IPO size at $100 million.

According to the revised prospectus, the company will offer 8,269,231 ordinary shares, expecting a placement price of $25 to $27 per share.

Iris Energy expects trading of the shares under the ticker IREN to commence on Nasdaq by the end of 2021.

The underwriters for the IPO are JPMorgan, Canaccord Genuity, and Citigroup. The firm has granted them an option to purchase additional 1,240,384 shares at the placement price.

The funds raised through the IPO will be used to expand the business, including financing the construction and development of data centres, as well as the purchase of equipment for Bitcoin mining.

The company plans to reach a hash rate of 15.2 EH/s by September 2023, aided by a long-term Bitmain supply agreement for miners.

The firm owns a mining facility in the Canadian province of British Columbia since January 2020. The facility draws 98% of its energy from hydropower. As of 1 October 2021, it had a capacity of 30 MW and generated a hash rate of around 0.7 EH/s.

The data centre in Canada became Iris Energy’s first overseas venture, having been mining since 2019. The company plans to expand its operations in regions with cheap green energy and has arrangements to purchase a number of sites in British Columbia, Texas (USA) and the Asia-Pacific region.

Adjusted EBITDA for the third quarter of 2021 was $6 million, compared with $0.02 million in the same period a year earlier.

The firm sold all mined Bitcoin and, by the end of September, had no cryptocurrency reserves.

Earlier, in August, before deciding to pursue an IPO, the company filed with the SEC an application for a direct listing on Nasdaq.