Financial services company eToro plans to launch an initial public offering (IPO) in the United States within the next week, sparked by market volatility attributed to President Trump, according to a report.
Hype for eToro's Upcoming U.S. IPO 📊💸
After a brief hiatus, eToro – the Israel-based trading platform dealing in stocks and crypto – is preparing to make a splash with its much-anticipated Initial Public Offering (IPO) as soon as next week [1][2]. This comeback follows a minor setback in April amid market chaos spurred by former President Donald Trump's tariff announcements [3].
The Israeli powerhouse initially filed with the Securities and Exchange Commission (SEC) in late March, but the market's turmoil, coined the "Liberation Day" volatility, forced a delay in the offering [3]. Now, with market mayhem subsiding and competitors like Robinhood sprinting up by over 16% within the past month [1], eToro is cautiously eyeing a public debut.
This Israel-based company, founded in 2007, allows users to engage in social investing, mirroring the portfolios of top investors, alongside standard stock and crypto trading activities [1]. eToro had initially aimed for a $10.4 billion valuation through a Special Purpose Acquisition Company (SPAC) in 2021, but this plan ultimately fell through [1].
eToro's recent financials reveal a significant rebound, with a projected $931 million in commissions and $192 million net income in 2024, marking a substantial increase from $639 million and $15.3 million in 2023 [1].
The IPO is being backed by some of Wall Street's heavy hitters, including Goldman Sachs, Jefferies, UBS, and Citigroup [1]. Shares will trade under the ticker "ETOR" on the Nasdaq.
Despite eToro's recent settlement with the SEC over unlicensed brokerage operations, agreeing to pay $1.5 million and limiting U.S. crypto offerings [1], the broader cryptocurrency sentiment has largely improved. Bitcoin has breached the $100,000 mark, and expectations are high for reduced SEC scrutiny under the incoming administration [1].
Although eToro plans to list at a value higher than the $3.5 billion it secured during its 2023 funding round [1], the final IPO decision remains tentative and could change based on market fluctuations.
A successful eToro IPO could serve as a sign that the tech listing scene is starting to bounce back after CoreWeave's successful April debut [3]. However, other players in the industry, like Klarna and Circle, are still holding back due to lingering market uncertainty [3].
[1] Bloomberg[2] CNBC[3] CoinDesk[4] Reuters
- The upcoming IPO of eToro, the Israel-based trading platform known for stocks, crypto, and social investing, is being backed by Goldman Sachs, Jefferies, UBS, and Citigroup.
- Despite a minor setback in April due to market chaos, eToro is now preparing to make a splash with its IPO, hoping to list at a value higher than its 2023 funding round.
- Shares of eToro will trade under the ticker "ETOR" on the Nasdaq, amid expectations of improved cryptocurrency sentiment, with Bitcoin already breaching the $100,000 mark.
- eToro had initially aimed for a $10.4 billion valuation through a Special Purpose Acquisition Company (SPAC) in 2021, but this plan ultimately fell through.
- Competitors like Robinhood have seen growth within the past month, while other industry players like Klarna and Circle are still holding back due to lingering market uncertainty.
