Israel based, social trading focused online broker eToro has apparently hit the “go” button on its IPO plans, hiring investment bankers toward a planned initial public offering of the company in the US, according to Bloomberg reports.
eToro IPO plans
Bloomberg has stated that eToro is “working with Goldman Sachs” (NYSE:GS) on a potential IPO in the US, citing people familiar with the matter. We had reported earlier this year that eToro was targeting an IPO in either New York (likely listing on either the NYSE or NASDAQ) or in London, but that it was still considering its options.
Timing-wise, the reports are that eToro is considering going public “as soon as the second quarter” of 2025, however that has not yet been finalized.
eToro IPO valuation
In terms of valuation, there wasn’t really more new information other than the reiteration of an earlier statement made by eToro CEO Yoni Assia, that the company would seek a valuation in a listing above the $3.5 billion figure used in a private funding in March 2023. However, we had reported several months later, based on sources in Israel, that eToro shares were changing hands in the private market based on a valuation of just $1.7 billion for eToro, less than half that figure.
eToro tried to go public in early 2021 via a SPAC merger, announcing plans to merge with Betsy Cohen’s Fintech Acquisition Corp V, in a transaction that would have valued eToro in the $10 billion range, as its Revenues surged even amidst growing losses. That valuation was later renegotiated down to the $8-9 billion range in an attempt to restructure the deal (which would have required a significant outside investment from private investors), but ultimately in July 2022 the eToro IPO was cancelled.
eToro’s fortunes in recent years have seemed to closely mirror those of the crypto market, as the company has become a popular outlet for retail crypto trading. With Bitcoin crossing the magical $100K mark for the first time last week, and crypto trading volumes soaring among retail traders following Donald Trump’s win in the US Presidential race, the time might be right for eToro to look at bringing its act to the public markets.
eToro is likely also eyeing recent multi-year share price highs being hit by US neobroker Robinhood, as well as by Europe stock market listed rivals Plus500, XTB and Swissquote, and figuring that now is probably a good time to pursue an IPO.
eToro in the US online trading market
eToro has been making a concerted push in the US online trading market in recent months, announcing in November that the company’s services were now available nationwide following a New York launch, for US retail traders to trade fractional stocks, exchange traded funds, and options on the eToro platform. However eToro’s US arm recently paid $1.5 million in fines to settle SEC charges around crypto trading, in which eToro also agreed to restrict its crypto offering to US retail clients.
We will continue to follow this story as it develops.
