EToro, a leading stock brokerage platform, has set the price for its initial public offering (IPO) at $52 per share as it seeks to gauge investor interest in new market entries.
Based in Israel, EToro successfully secured nearly $310 million by selling close to 6 million shares, establishing the company’s market value at approximately $4.2 billion. Initially, EToro intended to price the shares between $46 and $50 each, with an additional 6 million shares being offered by existing investors.
The IPO landscape appeared to be reviving following President Donald Trump’s return to office in January, which brought hope after a stagnation caused by increasing interest rates and inflation worries. The recent launch of CoreWeave back in March marked a positive signal for companies like EToro, online lending platform Klarna, and ticket reseller StubHub as they aimed for their own public listings.
However, uncertainty surrounding tariffs disrupted those aspirations. EToro had initially filed for its IPO in March but paused the process amid market volatility attributed to rising tariff concerns, a fate also shared by Klarna and StubHub.
As EToro prepares for its Nasdaq debut under the ticker symbol ETOR, it will be a critical test for the public markets’ readiness to embrace higher-risk offerings. Concurrently, digital physical therapy firm Hinge Health has commenced its IPO roadshow, planning to raise up to $437 million, while fintech company Chime has submitted its prospectus to the SEC.
EToro is not the only trading app making waves; Webull successfully merged with a special-purpose acquisition company earlier this year in April.
The company, founded in 2007 by brothers Yoni and Ronen Assia along with David Ring, faces competition from platforms like Robinhood. EToro generates revenue primarily through trading-related fees, including spreads on buy and sell orders, along with charges for non-trading activities such as currency conversion and withdrawals.
Last year, EToro reported a staggering increase in net income, soaring nearly thirteenfold to $192.4 million from $15.3 million the previous year. The firm has also significantly ramped up its cryptocurrency operations, with revenue from digital assets more than tripling to over $12 million in 2024. Notably, one-quarter of the company’s net trading contributions stemmed from crypto, a substantial jump from the 10% recorded the year before.
This latest IPO marks EToro’s second attempt at going public. In 2022, the company abandoned plans to enter the market through a merger with a SPAC amidst a notable downturn in equity markets, with that deal potentially valuing the company at over $10 billion.
CEO Yoni Assia expressed to Finance Newso earlier this year that the company remained focused on a market debut while actively building relationships with exchanges, including Nasdaq. “We definitely are eyeing the public markets,” Assia stated. “I definitely see us becoming eventually a public company.”
According to EToro’s prospectus, investment giant BlackRock has shown interest in acquiring $100 million in shares at the IPO price. The company has announced plans to sell 5 million shares in this offering, alongside another 5 million being sold by existing investors and executives.
The underwriting for this IPO is being handled by Goldman Sachs, Jefferies, and UBS.
— Reporting contributed by Finance Newso’s Ryan Browne and Jordan Novet
