Israeli trading platform eToro is moving ahead with its long-delayed U.S. public listing, targeting a valuation of up to $4 billion as markets begin to stabilize after recent tariff-driven turbulence.
The Bnei Brak-based company and some existing shareholders plan to raise up to $500 million by offering 10 million shares priced between $46 and $50 each. The IPO will see eToro list on the Nasdaq under the ticker symbol ETOR.
The offering will be closely watched as a gauge of investor appetite for new listings in a market still recovering from macroeconomic uncertainty.
“Given how early we are in the IPO revival cycle, investors are often looking for large discounts,” said Jeff Zell, senior research analyst at IPO Boutique. “If eToro is able to properly tell its growth story in a highly competitive market, they will be able to achieve a successful outcome.”
As part of a 2023 settlement with the U.S. Securities and Exchange Commission, eToro agreed to restrict its American crypto offerings to Bitcoin, Bitcoin Cash, and Ether after being charged with operating as an unregistered broker and clearing agency.
Global asset manager BlackRock is reportedly interested in purchasing up to $100 million worth of shares in the offering. The IPO is being led by Goldman Sachs, Jefferies, UBS, and Citigroup.
This is eToro’s second attempt to go public. In 2021, the company pursued a $10.4 billion merger with a special purpose acquisition company (SPAC), but the deal was abandoned in 2022 due to a market-wide SPAC downturn.
The social investing network has shown resilience since then, raising $250 million in March 2023 at a $3.5 billion valuation. That round included investments from ION Group, SoftBank’s Vision Fund 2, and Velvet Sea Ventures. However, reports from Israel suggested in December that eToro’s shares were traded privately at a valuation closer to $1.7 billion, revealing a massive discrepancy.
Beyond its IPO plans, eToro expanded its offerings and global footprint. In September 2023, the company acquired Australian investment app Spaceship for $55 million. However, it also faced challenges, including a $1.5 million settlement with the SEC over allegations of operating as an unregistered broker and clearing agency in the U.S. since at least 2020. The settlement restricts eToro’s crypto trading operations in the U.S. but does not impact its global business.
Founded by CEO Yoni Assia, eToro employs nearly 1,700 people worldwide, with 1,000 based in Israel. The company’s IPO plans come during a period of heightened interest in crypto-related financial activities.
The decision to pursue an IPO now comes as eToro seeks to take advantage of favorable market conditions, particularly growing retail interest in cryptocurrency. The recent surge in Bitcoin’s price, alongside broader enthusiasm for crypto trading, boosted investor sentiment.
eToro is also inspired by the strong market performance of rivals like Robinhood and European brokers such as Plus500, XTB, and Swissquote.