eToro, the leading trading platform, is poised to raise nearly $620 million in its U.S. Initial Public Offering (IPO) as it makes its highly anticipated debut on the Nasdaq. The company has priced its shares above the initially marketed range, with shares set at $52 apiece, surpassing the earlier projected range of $46 to $50.
Details of the Offering
According to a May 13 press release, eToro and its existing shareholders will offer 11.92 million shares in the IPO, up from the previously planned 10 million shares. This upsized offering values the company at approximately $4.3 billion, or nearly $5 billion on a fully diluted basis.
Institutional interest has been robust, with funds managed by BlackRock signaling an intention to purchase up to $100 million worth of shares, underscoring confidence in the company’s prospects.
A Strategic Comeback
The Israeli fintech firm had previously put its IPO plans on hold in April due to market volatility triggered by tariff-related policy shifts under President Donald Trump. In 2022, eToro also attempted to go public through a $10.4 billion Special Purpose Acquisition Company (SPAC) deal, which ultimately fell through.
However, the company’s resurgence highlights a positive shift in market sentiment, particularly as investors are more willing to embrace fintech firms offering both traditional and digital asset trading options.
Business Performance and Growth
Founded in 2007, eToro has grown to become a prominent player in both stock and cryptocurrency trading, offering innovative features like copy trading. In its IPO filing, eToro reported a significant leap in profitability, posting a net income of $192 million for 2024, up from just $15.3 million the previous year. The company’s net contribution also grew from $557 million to $787 million over the same period, signaling strong growth across its core business operations.
Regulatory Challenges and Settlement with the SEC
While eToro’s IPO journey has been marked by ups and downs, the company recently navigated a regulatory hurdle with the U.S. Securities and Exchange Commission (SEC). As part of a settlement, eToro agreed to limit its U.S. crypto trading offerings to Bitcoin, Bitcoin Cash, and Ethereum, addressing concerns related to its status as an unregistered broker.
IPO Leadership and Market Debut
The IPO is being led by Goldman Sachs, Jefferies, UBS, and Citigroup, with the company also reserving 500,000 shares for its directed share program. However, due to sanctions, shares will not be distributed to Russia-affiliated entities, including SBT Venture Fund I, which holds more than 6% of eToro’s Class A shares.
eToro’s shares are expected to begin trading on the Nasdaq Global Select Market today under the ticker symbol ETOR. The successful completion of this IPO underscores growing investor confidence in fintech firms, particularly those offering exposure to both traditional and digital assets.
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