eToro locks in $4.2B valuation, tests IPO waters with Nasdaq listing

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.