2025-05-06
eToro Announces Launch of Initial Public Offering
Israeli trading platform eToro has filed with the SEC its long-anticipated U.S. initial public offering, aiming
for a valuation of up to $4 billion.
The company and existing shareholders
plan to raise $500 million by offering 10 million shares priced between $46 and
$50 each, according to a regulatory filing released Monday.
Founded in 2007, eToro allows users to
trade stocks and cryptocurrencies, catering primarily to retail investors.
The company plans to list on the Nasdaq
Global Select Market under the ticker symbol “ETOR.”
The IPO includes 5 million new shares
issued by eToro and another 5 million from existing stakeholders, including
co-founder and CEO Yoni Assia, executive director Ronen Assia, and early
backers such as Spark Capital and BRM Group.
Funds managed by BlackRock have
indicated potential interest in purchasing up to $100 million worth of shares.
eToro also plans to sell 500,000 shares
through a directed share program, typically reserved for employees and close
affiliates.
The offering is led by a consortium of
major banks including Goldman Sachs, Jefferies, UBS Investment Bank, and
Citigroup.
The IPO filing comes as markets
stabilize following recent turbulence, including a temporary freeze in IPO
activity after former President Donald Trump’s early April tariff announcement
rattled global equities. eToro initially filed confidentially with the SEC in
January and formally announced the IPO in March.
Competitors like Robinhood (HOOD) have
seen mixed performance, with crypto trading volume down in Q1 but shares up
nearly 30% this year.
eToro reported $12.1 billion in crypto
revenue in 2024, a sharp rise from $3.4 billion in 2023. However, the company
expects crypto’s share of total commission revenue to drop slightly to 37% in
Q1 2025, down from 43% a year earlier.
The company warned investors of
potential risks, including user attrition due to negative sentiment around
cryptocurrencies and mounting regulatory challenges. These include complex U.S.
state-level rules and the European Union’s MiCA framework, which eToro says
will lead to ongoing costs.
Other crypto firms like Circle and
Kraken eyeing public listings.
