eToro set to launch on Nasdaq, aiming to raise $620 million in an increased Initial Public Offering (IPO)
eToro sails towards a monumental $620 million IPO, price boldly soaring above expectations!
In a triumphant statement, eToro, joined by its shareholders, announced the sale of 11.92 million shares at a whopping $52 each, surpassing the initial marketed range of $46-$50. This groundbreaking move has eToro valued at around $4.3 billion—a figure ballooning to nearly $5 billion when considering fully diluted shares.
According to a revelatory press release on May 13, the wave cresting towards a Nasdaq debut on May 14 will also see an increase in shares from the initial 10 million, totaling 13,711,470 Class A common stocks[1]. With the underwriters fully exercising their over-allotment option, the number of shares sold has climbed to 13,711,470[1].
Financial heavyweights like BlackRock have shown intent to invest up to $100 million in eToro shares, a testament to the Israel-based firm’s budding revival. After pausing IPO plans in April due to market volatility resulting from tariff policies, eToro's resolution is a striking comeback[1]. The company's prior attempt to go public via a $10.4 billion Special Purpose Acquisition Company deal tantalizingly slipped away in 2022.
With roots tracing back to 2007, eToro has honed its line of service to encompass stock and crypto trading, as well as copy trading features[1]. The company reaped $192 million in net income for 2024, marking a staggering increase from $15.3 million the year before. A testament to its growth, net contribution escalated to $787 million from $557 million over the same period[1].
Worthy of mention, eToro inked an agreement to limit U.S. crypto trading to Bitcoin, Bitcoin Cash, and Ethereum last year, following a settlement with the Securities and Exchange Commission for operating as an unregistered broker[1].
Goldman Sachs, Jefferies, UBS, and Citigroup are shepherding the epic journey, leading the IPO. The company has earmarked 500,000 shares for a directed share program, while sanctions-related restrictions have thwarted shares from being distributed to Russia-affiliated SBT Venture Fund I, which controls over 6% of Class A shares[1].
eToro shares are set to break waves on the Nasdaq Global Select Market today, May 14, under the ticker ETOR. The success of eToro's IPO underscores a rising tide of faith in capital markets, particularly for fintech firms skating the delicate line between traditional and digital asset exposure.
Yet, uncertainties lurk just beneath the surface as eToro's SEC deal has sparked concerns that crypto freedom may be on the chopping block[2].
- The surge in eToro's valuation, now nearing $5 billion, has opened up opportunities for investment in their crypto offerings, making them a significant player in the crypto finance space.
- Goldman Sachs, Jefferies, UBS, and Citigroup, as underwriters for eToro's IPO, have chosen to only offer tokens for trading in Bitcoin, Bitcoin Cash, and Ethereum on the platform, reflecting regulatory constraints.
- Amidst the excitement of eToro's successful $620 million IPO, discussions have emerged about potential limitations on crypto freedom, as evidenced by the company's settlement with the SEC.
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