The stock brokerage and burgeoning crypto platform eToro is stepping into the Wall Street spotlight, having priced its initial public offering at $52 per share.
This move signals the company’s readiness to gauge investor appetite for new listings in a market still finding its footing after a period of volatility.
The Israel-based firm successfully raised nearly $310 million through the sale of almost 6 million shares, a transaction that pegs the company’s valuation at approximately $4.2 billion.
This pricing lands above its initially targeted range of $46 to $50 per share.
Alongside the company’s offering, existing investors are also divesting an additional tranche of nearly 6 million shares, further shaping the public float.
The path to this moment has been paved with cautious optimism.
The IPO market had shown signs of a potential resurgence earlier in the year, particularly following President Donald Trump’s return to the White House in January, which some hoped would break a prolonged drought influenced by rising interest rates and persistent inflationary concerns.
Indeed, CoreWeave’s successful March debut provided a glimmer of hope for other aspiring public companies, including eToro, online lending giant Klarna, and ticket reseller StubHub.
However, this nascent recovery faced headwinds.
“Tariff uncertainty temporarily stalled those plans,” the original article noted, capturing a period of market jitters.
Consequently, eToro, which had filed for its IPO in March, alongside Klarna and StubHub, opted to shelve its immediate ambitions as markets grappled with the implications of trade policy shifts.
A bellwether for risk? eToro’s debut and market sentiment
Now, as eToro prepares for its Nasdaq debut under the ticker symbol ETOR, its performance may serve as a significant litmus test for the broader public market’s willingness to embrace risk.
The IPO landscape is showing renewed activity; digital physical therapy company Hinge Health has commenced its IPO roadshow, revealing in a Tuesday filing its intention to raise up to $437 million.
Also on Tuesday, fintech innovator Chime submitted its prospectus to the SEC, indicating its own public market aspirations.
This follows the April move by another trading application, Webull, which went public via a merger with a special-purpose acquisition company (SPAC).
Crypto aspirations fueling growth and investor interest
Founded in 2007 by brothers Yoni and Ronen Assia along with David Ring, eToro operates in a competitive landscape, challenging established players like Robinhood.
Its revenue model is built on fees tied to trading activities, such as spreads on buy and sell orders, and non-trading operations including withdrawals and currency conversions.
The company’s financial trajectory has been notable, with net income soaring almost thirteenfold last year to $192.4 million, a substantial increase from $15.3 million the previous year.
A significant driver of this growth has been its expanding crypto business.
Revenue from cryptoassets more than tripled to exceed $12 million in 2024, and crypto-related activities accounted for a quarter of its net trading contribution last year, up sharply from 10% in the prior year.
This isn’t eToro’s maiden voyage into the public offering process.
“In 2022, the company scrapped plans to hit the market through a merger with a special purpose acquisition company (SPAC) during a sharp downturn in equity markets,” the source material highlighted.
That earlier deal would have valued eToro at a considerably higher figure of more than $10 billion.
Despite the previous setback, CEO Yoni Assia remained committed to a public listing.
He told CNBC early last year that eToro was still aiming for a market debut but was “evaluating the right opportunity” while building relationships with exchanges, including the Nasdaq.
“We definitely are eyeing the public markets,” Assia stated at the time. “I definitely see us becoming eventually a public company.”
Adding a vote of confidence to the current offering, eToro disclosed in its prospectus that investment behemoth BlackRock had “expressed interest in buying $100 million in shares at the IPO price.”
The company further detailed its plan to sell 5 million shares in the offering, with existing investors and executives slated to sell an additional 5 million.
The underwriting syndicate for this significant financial maneuver includes industry heavyweights Goldman Sachs, Jefferies, and UBS.
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