eToro announces its IPO priced at $52 per share, above expectations. After a prior attempt to go public fell through, the company aims to raise significant funds while testing market interest. With a strong performance in profits and crypto, its upcoming Nasdaq debut could reveal investor sentiment amid market uncertainties. Notable investors like BlackRock signal potential confidence in the offering.
eToro, the Israel-based stock brokerage that’s recently gained traction in crypto, announced it has set its IPO price at $52 a share. This figure comes in above its initial expectation of a price between $46 and $50. The retail platform had filed for the IPO back in March but had to pause those plans due to rising tariff uncertainties that were unsettling the market.
This isn’t eToro’s first foray into public markets. In 2022, the company attempted to merge with a special purpose acquisition company (SPAC) but ultimately scrapped those plans amid worsening market conditions. Now, with the upcoming Nasdaq debut scheduled under the ticker ETOR, eToro is returning to test investor appetite.
The IPO is expected to raise about $310 million, selling nearly 6 million shares, which puts the company’s valuation at approximately $4.2 billion. Additionally, existing investors are parting with almost another 6 million shares. There is a notable uptick in optimism for IPO activity, particularly after CoreWeave’s debut back in March, which sparked interest again for other companies such as online lender Klarna and ticket reseller StubHub.
In recent months though, market dynamics have been dicey, and as such, several firms, including Klarna and StubHub, have had to delay their IPO efforts. eToro’s entrance into the Nasdaq could signal if investors are willing to embrace risk once more in this currently uncertain climate. On the same day as eToro’s news, Hinge Health announced its IPO roadshow, aiming to raise $437 million, and fintech Chime filed its prospectus with the SEC.
In terms of performance, eToro has shown impressive growth, with net income soaring to $192.4 million last year, up from just $15.3 million. Their crypto business, in particular, saw a considerable boost—the revenue from crypto assets tripled to over $12 million. Notably, this surge means that crypto now represents a quarter of eToro’s net trading contributions, up from 10% the prior year.
Founded in 2007 by brothers Yoni and Ronen Assia along with their partner David Ring, eToro operates in a competitive space against the likes of Robinhood. Its revenue streams include trading fees, spreads on trades, and even non-trading activities like withdrawals and currency conversion. Ahead of this IPO, eToro drew attention by revealing that BlackRock is interested in purchasing $100 million worth of shares at the IPO price.
To facilitate this IPO, key financial institutions such as Goldman Sachs, Jefferies, and UBS are managing the underwriting process. CEO Yoni Assia previously expressed optimism regarding a public listing, saying last year they are keenly evaluating opportunities while fostering ties with market exchanges like Nasdaq. The firm seems poised to take on the public market, and as they move forward, the outcome of this IPO will be worth watching closely.
