Swedish crypto broker Safello's IPO oversubscribed by 1,240%

Swedish crypto broker Safello announced Wednesday that its initial public offering (IPO) has been oversubscribed by 1,240%.

Safello had 40.5 million Swedish kronor (around $4.8 million) worth of new shares on the offer through the IPO, but it received bids for 502 million kronor ($59 million) worth of shares.

The oversubscription means there was a high demand for Safello's shares, but the firm will allot only $4.8 million worth of shares to some 1,500 new shareholders.

"We are thrilled to see the great interest in Safello's shares and what it signals for the future of our industry," said Safello co-founder and CEO Frank Schuil. "The prospect of a cryptocurrency-based financial system is picking up steam in Sweden and beyond."

Safello first announced its intention to go public on February 16. Last month, the firm received preliminary approval from Nasdaq Stockholm for listing on Nasdaq First North. The IPO subscription opened from April 19 through April 30. The listing is now expected on May 12 under the ticker SFL.

Last month, U.S. crypto exchange Coinbase went public on Nasdaq via direct listing, becoming the largest direct listing in history. Coinbase rival Kraken could also go public via direct listing next year.

Elsewhere in the crypto market, merchant bank Galaxy Digital is also in the process of U.S. listing. The firm is already public in Canada via the Toronto Stock Exchange. Crypto exchange Gemini is also considering going public.