Nikolas Sargeant
The social trading platform's highly anticipated public debut surpasses initial projections with shares priced at $52, securing a $4.3 billion market valuation as it prepares to begin trading under ETOR symbol.
Multi-asset trading platform eToro has priced its upsized initial public offering at $52 per share, significantly above its marketed range of $46 to $50, positioning the company to raise nearly $620 million when it debuts on the Nasdaq Global Select Market on May 14. The platform will trade under the ticker symbol ETOR, marking one of the year's most significant fintech public offerings.
Originally established in 2007 as a pioneering social stock-trading network, eToro strategically expanded its services to include cryptocurrency trading in 2018. This pivotal addition transformed the company into one of the largest retail cryptocurrency brokerages globally, though its crypto ambitions in the United States faced regulatory hurdles. In September, eToro reached a settlement with the Securities and Exchange Commission over allegations it operated as an unregistered broker and clearing agency, agreeing to limit its U.S. cryptocurrency offerings exclusively to Bitcoin, Bitcoin Cash, and Ether.
Investment Giant BlackRock Signals Confidence with Major Stake Commitment
According to regulatory filings, eToro plans to sell 11.92 million shares in the upsized offering, attracting significant institutional interest. Asset management powerhouse BlackRock has indicated its intention to purchase up to $100 million of shares at the IPO price, providing a substantial vote of confidence in the trading platform's future prospects.
The Israel-based company secured premium investment banking support for its public debut, with Goldman Sachs, Jefferies, UBS, and Citigroup serving as lead underwriters for the transaction. While eToro initially targeted a valuation of approximately $4 billion, the stronger-than-expected pricing now gives the company a market capitalization of roughly $4.3 billion based on outstanding shares. When including employee stock options, eToro's fully diluted valuation approaches $5 billion.
This successful offering represents a remarkable turnaround from eToro's previously abandoned 2022 SPAC merger attempt, which would have valued the company at more than $10 billion before broader market volatility forced the company to shelve its public listing plans.
Digital Asset Firms Accelerate Public Listing Plans Amid Favorable Market Conditions
eToro's successful pricing arrives amid resurging U.S. IPO activity, bolstered by the current administration's more accommodative stance toward financial markets and technology companies. Several prominent cryptocurrency firms are reportedly preparing for potential public offerings in 2025, capitalizing on recovering digital asset markets and evolving regulatory frameworks.
Industry leaders including USDC stablecoin issuer Circle, cryptocurrency exchange Kraken, blockchain payment network Ripple, crypto exchange Gemini, and Peter Thiel-backed trading platform Bullish have all been connected to potential public offerings in the coming months.
For these digital asset companies, public listings offer multiple strategic advantages beyond capital raising, including enhanced operational transparency, improved market credibility, and expanded access to investors who might prefer exposure to the cryptocurrency ecosystem through traditional equity investments rather than direct digital asset holdings.
