eToro Prepares for U.S. IPO Amid Market Recovery
eToro Group Ltd., the Israel-based trading platform, is gearing up for its U.S. initial public offering (IPO) as early as next week, according to Bloomberg. The company had initially paused its IPO plans in April due to market volatility caused by former President Donald Trump’s tariff announcements.
founded in 2007, eToro allows users to trade stocks adn cryptocurrencies. It also offers a unique feature where users can mirror the portfolios of top investors. The company had filed with the SEC in late March but delayed the offering due to market turbulence.
With market conditions improving and similar platforms like Robinhood seeing a 16% increase in the past month, eToro is now considering a public debut. The IPO is being led by Goldman Sachs, Jefferies, UBS, and Citigroup, with shares set to trade on the Nasdaq under the ticker “ETOR.”
eToro’s financials for 2024 show a significant rebound, with $931 million in commissions and $192 million in net income, up from $639 million and $15.3 million in 2023. The company previously attempted to go public via a SPAC at a $10.4 billion valuation.
Despite regulatory challenges, including a recent SEC settlement for unlicensed brokerage operations, the broader crypto sentiment has improved.Bitcoin is trading above $100,000, and there are expectations of looser SEC oversight under the new administration.
eToro aims for a valuation above the $3.5 billion it reached in its 2023 funding round. The final IPO decision may still depend on market conditions.
