Social investment fintech eToro is seeking to raise $500 million through its initial public offering in the U.S., targeting a valuation of $4 billion and an expected IPO date of May 14.
The firm and some of its shareholders are offering 10 million shares for between $46 and $50 each, according to a securities filing, half of which are being offered by the company and half by the shareholders.
Founded in 2007 in Tel Aviv, Israel by brothers Yoni Assia and Ronen Assia and cofounder David Ring, eToro is a social trading app that allows users to replicate the trading strategies of top investors. It has over 40 million users, according to the securities filing.
After first filing in late March, eToro put a hold on its IPO pursuit due to tariff-related market volatility that followed President Donald Trump’s major tariffs announcement in early April, Bloomberg reported. Buy now,pay later fintech Klarna also paused its IPO for the same reason, The Wall Street Journal reported.
But in eToro’s May 5 IPO filing, the company said that certain funds and accounts managed by BlackRock, the firm’s cornerstone investor, have indicated an interest in purchasing as much as $100 million in shares at the IPO price.
For 2024, eToro reported a net contribution of $787 million in 2024 and net income of $192 million. The figures represent a 41% increase and 1,161% increase, respectively, from the prior year, according to the filing.
The company is in a quiet period following the IPO filing and did not provide comment beyond the press release.
eToro was among the firms named by fintech investor Nigel Morris, QED Investors co-founder, as part of a “generation” likely to file IPOs this year.
“In 2021, there were 61 fintech IPOs,” he said during his keynote at Fintech Meetup in March. “Since 2021, there’s been a total of 13.”
“Now we have a cohort of companies that are at scale, they’re profitable, they’re growing fast, that have business models that make sense,” he said, naming Klarna, Circle and eToro. All three have since filed an IPO.
“Notwithstanding the turbulence of the angry markets this week and today … there’s no doubt that these companies are IPO-ready and will be [in] the right window, either at the end of this quarter or next quarter, that will see a whole generation of them,” Morris said. “And with that, there’ll be a wave of valuations that are market-tested … these are really powerful and capable companies.”
eToro’s IPO is being led by Goldman Sachs, Jefferies, UBS and Citi. Shares are expected to trade under the ticker symbol ETOR on the Nasdaq Global Select Market.
