eToro's IPO on the Brink: What's Happening?
U.S. IPO on the horizon for eToro next week, driven by market volatility attributed to Trump's influence, as per a report.
Get the lowdown on eToro's long-awaited U.S. initial public offering! This Israel-based trading platform could hit the Nasdaq as early as next week, bringing a fresh wave of investment opportunities.
The rollercoaster ride began in April when market turmoil forced eToro to hit the brakes on its IPO plans. The culprit? Former President Donald Trump's tariff announcements causing a brief freeze in dealmaking activity. But now, with volatility easing and financial powerhouses like Robinhood hitting the marks, eToro's counting on its stellar performance to lead the way in a public debut.
Founded back in 2007, eToro offers the chance to trade stocks and crypto, with the option to copy top investors' portfolios. Its IPO journey isn't entirely new; the platform had previously aimed for a SPAC at a valuation of $10.4 billion.
Diving into some numbers, eToro's 2024 financials look impressive, with $931 million in commissions and $192 million in net income – a significant leap from 2023's $639 million and $15.3 million.
Watch this space, as eToro's listing could be one of the first to hit the ground running after the Trump-led IPO freeze. It's also worth mentioning that the company has settled SEC allegations over unlicensed brokerage operations, agreeing to pay $1.5 million and restrict certain crypto offerings.
The IPO is being spearheaded by Goldman Sachs, Jefferies, UBS, and Citigroup, with shares set to trade under the ticker "ETOR." Despite some regulatory hurdles, the broader crypto market sentiment has improved. Bitcoin is trading above the $100,000 mark, and there's a buzz that the SEC might relax its oversight under Trump's new administration.
The target valuation for eToro is above the $3.5 billion it reached in its 2023 funding round, backed by SoftBank Vision Fund 2 and ION Group. The final call on the IPO is still up in the air, though, as it could sway depending on market conditions.
Insights:
- Based on available reports, eToro initiated a U.S. IPO confidence filing and an S-1 registration on March 24, 2025. However, it paused its original investor meetings in April due to market volatility linked to trade policy concerns, suggesting a provisional timeline.
- Valuation targets vary across sources: $4.5 billion pre-money, $4 billion post-money, and $5 billion, as reported in different filings and data releases.
- No specific underwriters have been named in recent filings or reports, though they will likely be disclosed closer to the rescheduled listing.
- Despite a brief suspension in April 2021 due to market volatility caused by former President Trump's tariff announcements, eToro's IPO is expected to occur as early as next week on the Nasdaq.
- eToro, a platform that offers trading opportunities in stocks, crypto, and other assets, was initially aiming for a Special Purpose Acquisition Company (SPAC) at a valuation of $10.4 billion.
- With impressive 2024 financial projections, including $931 million in commissions and $192 million in net income, eToro is optimistic about its public debut.
- Goldman Sachs, Jefferies, UBS, and Citigroup are leading the IPO, with shares to trade under the ticker "ETOR."
- Bitcoin's price surpassed $100,000, and the Securities and Exchange Commission (SEC) might relax its oversight under Trump's new administration, improving the broader crypto market sentiment.
- The target valuation for eToro's IPO is above the $3.5 billion it reached in its 2023 funding round, with SoftBank Vision Fund 2 and ION Group amongst its investors. However, the final decision on the IPO is yet to be made, as it may be influenced by market conditions.
