Safello, a Swedish cryptocurrency exchange platform, said its upcoming initial public offering (IPO) on the Nasdaq First North exchange has been “heavily oversubscribed” with a subscription ratio of around 1,240%.
The crypto broker said on Wednesday that through the new share issue it will receive around 40.5mln Swedish Krona (£3.4mln) and over 1,500 new shareholders, although it added that the amount of total subscription interest had been the equivalent of around 502mln Krona (£42.5mln).
The company is expected to begin trading on Nasdaq First North on May 12 under the ticker ‘SFL’.
“We are very happy about the overwhelming interest that Safello’s IPO has generated. This is another validation of the maturity of the crypto industry and how it is finding its footing in the established financial industry. Now the focus is on executing our growth plans and creating long-term value for our shareholders”, Safello’s co-founder and chief executive Frank Schuil.
As of March 31, 2021, Safello reported that it had over 191,000 customers and completed over 412,000 transactions, corresponding to a total transaction volume of over 1bn Krona since inception. The company has also been profitable since mid-2019, while net sales increased by around 52% between 2019 and 2020.
Safello’s float follows the direct listing last month of fellow crypto trading platform Coinbase Global Inc (NASDAQ:COIN), which was considered by many to be a litmus test of the crypto sector’s booming popularity among investors.
Since listing, Coinbase shares have continued to trade above their US$250 reference price, ending Tuesday’s session on Wall Street at US$280.66.