Principal Insights
eToro has secretly lodged a request for a US IPO, aiming for a $5 billion valuation.
Goldman Sachs, Jefferies, and UBS are spearheading the IPO initiative, with plans for a possible listing in Q2 2025.
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According to the FT on Thursday, eToro has made a discreet submission with the SEC as the firm prepares for a public market entry in New York. The company’s IPO intentions are supported by Goldman Sachs, Jefferies, and UBS.
The Israel-based firm is pursuing a $5 billion valuation, targeting a potential listing as soon as the second quarter of 2025, per the report. The objective of the listing is to broaden its investor reach, even though its predominant market is in the UK.
This signifies eToro’s latest effort at going public after an unproductive SPAC merger attempted at a $10.4 billion valuation in 2021. The agreement fell apart due to declining market conditions. The firm also contemplated a potential flotation earlier in 2024.
The platform’s enhanced financial results bolster its IPO ambitions. After incurring losses in 2022, eToro saw $630 million in revenue in 2023 and anticipates higher profits in 2024.
eToro, which offers a platform for trading stocks, ETFs, and digital currencies, reports having over 30 million users across 140 nations. In September 2024, eToro ceased trading for the majority of crypto assets following a settlement with the SEC regarding violations of federal securities laws.
The corporation is broadening its offerings beyond trading, which includes plans for ETF and mutual fund products, in addition to pension schemes. eToro has recently purchased Spaceship, an Australian pension management application, and has collaborated with a UK pension fund.
The submission takes place amid a resurgence of interest in crypto assets, following the appointment of Paul Atkins to head the SEC. Atkins is known to be pro-crypto and pro-innovation.
Ark Invest posits that Trump’s strategies could create substantial advantages for the crypto industry, potentially creating a more conducive environment for digital asset firms pursuing public offerings, such as Circle and Kraken.
Circle, the issuer of the USD Coin stablecoin, has already filed confidentially for an IPO, while Kraken is gearing up for its own IPO after securing $100 million in a pre-IPO financing round.
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