eToro confidentially files for US IPO with Goldman Sachs' support
Exploring US opportunities, eToro positions for growth after a setback with its initial SPAC merger.
Key Takeaways
- eToro has confidentially filed for a US IPO targeting a $5 billion valuation.
- Goldman Sachs, Jefferies, and UBS are leading the IPO effort, with plans for a potential listing in Q2 2025.
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eToro has submitted a confidential filing with the SEC as the company prepares for a public offering in New York, the FT said Thursday. The firm’s IPO plans are backed by Goldman Sachs, Jefferies and UBS.
The Israel-headquartered company is targeting a $5 billion valuation and a potential listing as early as the second quarter of 2025, according to the report. The listing’s goal is to reach a broader investor base, despite having its largest market in the UK.
This marks eToro’s latest attempt at going public after an unsuccessful SPAC merger valued at $10.4 billion in 2021. The deal collapsed due to deteriorating market conditions. The company also explored a potential flotation earlier in 2024.
The platform’s improved financial performance supports its IPO pursuit. Following losses in 2022, eToro generated $630 million in revenue in 2023 and projects higher profits in 2024.
eToro, which provides a platform for trading stocks, ETFs, and digital assets, reports having more than 30 million users across 140 countries. In September 2024, eToro halted trading for most crypto assets following a settlement with the SEC over federal securities law violations.
The company is expanding its services beyond trading, including plans for ETF and mutual fund offerings, as well as pension plans. eToro recently acquired Spaceship, an Australian pension management app, and formed a partnership with a UK pension fund.
The filing comes amid renewed enthusiasm for crypto assets, following the selection of Paul Atkins to lead the SEC. Atkins is a pro-crypto, pro-innovation businessman.
Ark Invest suggests Trump’s policies could provide significant tailwinds for the crypto industry, potentially creating a more favorable environment for digital asset companies seeking public listings, like Circle and Kraken.
Circle, the issuer of the USD Coin stablecoin, has already confidentially filed for an IPO, while Kraken is preparing for its own IPO after raising $100 million in a pre-IPO funding round.
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