eToro, one of the world’s largest stock and cryptocurrency trading platforms, has priced its initial public offering (IPO) at $52/share. The company is preparing for its arrival on the Nasdaq under the ticker ETOR. Developed in 2007 by brothers Yoni Assia and Ronen Assia with David Ring, eToro has gone on to see incredible growth. After a sluggish year in 2021—the company had a net income of $15.3 million—last year, the company’s net income soared to $192.4 million.
The company’s huge revenue growth underscores the surge in demand for its trading services. Like Robinhood, eToro earns the majority of its revenue from fees related to trading. These are made up of spreads between buy and sell orders, as well as non-trading fees such as withdrawal and currency conversion fees. In 2024, eToro announced that their revenue from crypto assets had more than tripled. It has increased more than threefold to over $12 million, now accounting for one-quarter of its net trading contribution, up significantly from only 10% last year.
To raise money for its own IPO, eToro is preparing to sell 5 million shares. Moreover, current shareholders and company executives will sell another 5 million shares. All said and done, the company has now raised nearly $310 million through this offering, giving eToro a pro forma valuation of around $4.2 billion.
In 2022, eToro scrapped plans for a merger with a special purpose acquisition company (SPAC), opting instead for a traditional IPO route. Nationally-known investment banks Goldman Sachs, Jefferies, and UBS are working on the deal as underwriters of the IPO. Most significantly, BlackRock has already said they want to buy $100 million of the firm’s shares at the IPO price.
Yet eToro will be met with stiff competition from other well-known platforms such as Robinhood. Its entry into the public market represents a strong play in the highly competitive, fast growing online trading space.
Addressing what the company aims for in the financial markets, Yoni Assia said,
“We definitely are eyeing the public markets.” – Yoni Assia
He reiterated confidence in the company’s future direction when it comes to possibilities of going public.
“I definitely see us becoming eventually a public company.” – Yoni Assia
As eToro gets set for debut on Nasdaq, it’s causing a stir as much by coming IPO itself. This is an important time for the company and all potential investors looking to enter the booming online trading and investment market. Now institutional investors are holding eToro up with a flood of their own cash. Given eToro’s impressive financials, its public offering will likely attract significant attention.
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