Cryptocurrency companies have experienced a surge in business in the past few months, thanks to Bitcoin and other leading coins racing to new all-time highs. As a result, some of the companies are going public, and Swedish crypto broker Safello has a positive problem regarding its intended IPO.
Demand for Safello’s share surpasses the number of shares.
The Swedish crypto broker Safello announced earlier that it’s upcoming initial public offering (IPO) had been oversubscribed by 1,240%. The Company is planning to list on the stock exchange soon.
In a press release, Safello said, “Safello Group AB (“Safello” or “the Company”) now announces the outcome of the offer to subscribe for shares in the Company in connection with the initial public offering on Nasdaq First North Growth Market (the “Offer”). The issue of SEK 40.5 million was subscribed for approximately SEK 502 million, through 15,622 accounts, corresponding to a subscription ratio of approximately 1240 %.”
The Company had kept aside 40.5 million Swedish kronor ($4.8 million) worth of new shares to be distributed via its IPO. However, Safello received bids for 502 million kronor ($59 million) worth of its shares. Thus, implying that there is a high demand for the Company’s shares. The Company maintains that it would only issue $4.8 million worth of shares to some 1,500 investors.
Frank Schuil, Safello’s CEO, said they are thrilled with the massive interest in the Company’s shares and what it means for the industry’s future. “The prospect of a cryptocurrency-based financial system is picking up steam in Sweden and beyond. Companies positioned to work with incumbents will have a leg up to facilitate and drive this transition.
We look forward to executing our plans to speed up the transition and create long-term value for our existing and new shareholders,” he added.
Crypto companies are going public.
Safello announced in February that it was listed on the stock exchange. Last month, the Company received preliminary approval from Nasdaq Stockholm to list the Nasdaq First North exchange. The Company opened its IPO subscription on April 19 and closed it on April 30, and it is expected to go public on May 12.
The crypto broker’s listing will come roughly a month after Coinbase is officially listed on the NASDAQ stock exchange. Other crypto companies such as Kraken and Ripple are considering going public before the end of the year.