EToro, a popular stock brokerage platform that has been making waves in the crypto world, has set its IPO price at $52 per share. This move comes as the company gears up to gauge the market’s interest in new offerings.
The Israel-based company successfully raised nearly $310 million by selling almost 6 million shares in a deal that values the business at approximately $4.2 billion. In addition to the new shares being offered, existing investors are also selling nearly 6 million shares in the IPO.
IPOs have been on the rise following a period of stagnation caused by concerns about rising interest rates and inflation. The debut of CoreWeave in March was a positive sign for companies like eToro, Klarna, and StubHub, all of which had been eyeing public offerings.
However, uncertainty surrounding tariffs temporarily derailed these plans. eToro initially filed for an IPO in March but postponed its plans due to market volatility caused by tariff concerns. Similarly, Klarna and StubHub also put their IPOs on hold.
The successful debut of eToro on the Nasdaq under the ticker symbol ETOR will serve as a litmus test for the market’s appetite for risk. Meanwhile, other companies like Hinge Health and Chime are also gearing up for their own IPOs.
Founded in 2007 by brothers Yoni and Ronen Assia along with David Ring, eToro competes with platforms like Robinhood and generates revenue through trading fees and other activities. The company saw a significant increase in net income last year, jumping almost thirteenfold to $192.4 million.
eToro has been expanding its crypto business, with revenue from cryptoassets more than tripling to over $12 million in 2024. A quarter of the company’s net trading contribution last year came from crypto, up from 10% the previous year.
This isn’t eToro’s first foray into going public. In 2022, the company abandoned plans for an IPO through a SPAC merger amid a market downturn. CEO Yoni Assia has expressed the company’s intention to go public and had been building relationships with exchanges like Nasdaq.
BlackRock has shown interest in purchasing $100 million worth of shares at the IPO price, according to eToro’s prospectus. The company plans to sell 5 million shares in the offering, with existing investors and executives selling an additional 5 million shares.
Goldman Sachs, Jefferies, and UBS are the underwriters for the IPO. The successful pricing of eToro’s IPO demonstrates the company’s confidence in the market and sets the stage for future growth and expansion in the financial world.
