Quick overview
- eToro successfully debuted on the Nasdaq after raising $620 million in an IPO, pricing shares at $52 each.
- The Israel-based fintech company sold nearly 12 million shares, surpassing its initial target, and is now valued at over $4.2 billion.
- Despite previous setbacks in its path to going public, eToro has shown significant financial growth, with revenue soaring to $12.6 billion in 2024.
- The IPO reflects renewed investor confidence in fintech, with strong demand evidenced by the offering being more than ten times oversubscribed.
After raising $620 million in an initial public offering that exceeded expectations, therefore attesting to a major milestone for both the firm and the larger IPO market, trading and investment platform eToro effectively debuted on the Nasdaq Global Select Market today.
Pricing its shares at $52 each – well over its originally stated range of $46 to $50, the Israel-based fintech company, which provides a platform for trading stocks, cryptocurrencies, and other assets, Selling almost 11.92 million shares instead of its initial target of 10 million, the company traded under the ticker code “ETOR.”
eToro itself sold around 6 million shares, and equal numbers from current owners made up the offering. Representing a major test for the IPO market, which has been mainly inactive since 2021, the pricing puts the company at over $4.2 billion.
“This strong offering shows fresh investor confidence in growth-oriented fintech companies,” Renaissance Capital market analyst Matt Kennedy said. “But the IPO market won’t come alive over one or two deals. We will have to observe several effectively price and trade up.”
Established in 2007, eToro has positioned itself as a competitor to July 2021 publicly traded Robinhood Markets Inc. With $192.38 million in net profits for 2024, up sharply from $15.25 million in 2023, the corporation has showed remarkable financial achievement in recent years. From $3.89 billion the year before, total revenue soared to $12.6 billion in 2024.
For eToro, the route leading to public markets has been uneven. Previously hoping to go public with a $10.4 billion SPAC merger in 2021, the transaction fell apart in 2022. EToro was on schedule for an IPO earlier this year but had to stop in April following the announcement of President Trump’s “Liberation Day” tariffs, which set off market turbulence.
Among the notable recipients of the offer are CEO and co-founder Yoni Assia, who sold 549,635 Class A shares and can get as much as $28.6 million while his voting power falls to 9.34%. Selling 254,901 shares, his brother and co-founder Ronen Assia might profit $13.2 million. Leading eToro’s $15 million investment round in 2012, Spark Capital could make $34.85 million and had 670,257 shares.
Regulatory filings indicate BlackRock showed interest in buying up to $100 million in Class A shares at IPO price.
Having been charged with acting as an unlicensed broker and clearing agent, eToro resolved with the U.S. Securities and Exchange Commission in September 2024 agreeing to limit its U.S. cryptocurrency offerings to Bitcoin BTC/USD, Bitcoin Cash, and Ether ETH/USD.
The company’s debut is well-received in line with indications of a comeback in the bitcoin market and increased demand for fintech investments following Donald Trump’s return to the Whitehouse. From a $21 million deficit in 2022 to its present profitable posture, eToro’s economic trajectory has been very remarkable.
Lead book-running managers for the offering, which apparently was more than ten times oversubscribed, Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup reflected extraordinary investor demand.
With the offer slated to conclude on May 15, 2025, subject to customary closing circumstances, eToro has given the underwriters a 30-day option to buy up to an additional 1,749,452 Class A common shares.
Emphasizing collaborative investing through tools that let users share knowledge and mimic other investors’ techniques, the company’s digital trading platform reflects its mission of making trading and investment straightforward and open for everyone.
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
