eToro Prices IPO at $52 Per Share, Raises $620 Million for Nasdaq Listing

TLDR eToro priced its IPO at $52 per share, above the expected range of $46-$50 The company raised approximately $620 million by selling nearly 12 million shares, valuing it at about $4.2 billion Trading begins May 14 on Nasdaq under ticker symbol ETOR This is eToro’s second attempt at going public after scrapping SPAC plans in 2022 BlackRock expressed interest in buying $100 million in shares at the IPO price eToro, the Israel-based platform offering both crypto and stock trading services, has made its public market debut after pricing shares at $52 each for its initial public offering, exceeding its originally marketed range of $46 to $50 per share. The company raised approximately $620 million through the sale of nearly 12 million shares – about 6 million from the company itself and another 6 million from existing shareholders. The IPO values eToro at around $4.2 billion, a decrease from the $10 billion valuation it might have received in its canceled 2022 SPAC deal. The shares will begin trading on the Nasdaq Global Select Market on May 14 under the ticker symbol “ETOR.” The offering is expected to remain open until at least May 15, according to the company’s press release. Market Timing and Competition eToro’s market debut comes after a period of hesitation in the IPO market. The company initially filed confidentially with the SEC in January before publicly announcing plans in March. However, it temporarily shelved those plans as market uncertainty grew following President Trump’s tariff announcements in April. The platform will compete directly with Robinhood Markets Inc., which went public in July 2021. Robinhood’s shares have performed well in 2024, up over 67% year-to-date and nearing their all-time high of $65 per share. Founded in 2007 by brothers Yoni and Ronen Assia along with David Ring, eToro has established itself as a player in the retail trading space. The company makes money through various fees related to trading, including spreads on buy and sell orders, as well as non-trading activities like withdrawals and currency conversion. Financial Performance and Crypto Growth eToro’s financial performance has shown strong improvement. Net income jumped almost thirteenfold last year to $192.4 million from $15.3 million a year earlier, according to its prospectus. The company has been expanding its cryptocurrency business, with revenue from crypto assets more than tripling to over $12 million in 2024. One-quarter of its net trading contribution last year came from crypto, up from 10% in the previous year. eToro’s IPO is part of what appears to be a thawing IPO market, with several other companies planning or considering public offerings. Digital physical therapy company Hinge Health has started its IPO roadshow and plans to raise up to $437 million. Fintech company Chime also filed its prospectus with the SEC on Tuesday, with Renaissance Capital speculating it could raise up to $1 billion. In the crypto sector specifically, several companies are considering public offerings. Crypto exchange Kraken is reportedly looking at a public debut this year, while stablecoin issuer Circle filed with the SEC in April before pausing its plans. Crypto custody services firm BitGo is also reportedly preparing for an IPO later this year. BlackRock, the world’s largest asset manager, has expressed interest in purchasing $100 million in eToro shares at the IPO price, according to the company’s prospectus. This vote of confidence from such a major financial institution may have helped boost investor interest in the offering. This isn’t eToro’s first attempt to reach public markets. In 2022, the company scrapped plans to go public through a merger with a special purpose acquisition company (SPAC) during a downturn in equity markets. That deal would have valued the company at more than $10 billion. CEO Yoni Assia told CNBC early last year that eToro was still aiming for a market debut but was “evaluating the right opportunity” as it built relationships with exchanges, including the Nasdaq. The IPO was underwritten by several major financial institutions, including Goldman Sachs, Jefferies, and UBS. eToro’s successful pricing above its expected range may signal renewed appetite for tech and fintech IPOs, potentially opening the door for more crypto-related companies to access public markets in the coming months. Source: https://blockonomi.com/etoro-prices-ipo-at-52-per-share-raises-620-million-for-nasdaq-listing/