eToro is gearing up for a major IPO on the Nasdaq, aiming for a valuation of $4 billion and a fundraising of $500 million, with an IPO price set between $46 and $50 per share.
eToro prepares a grand entrance into the stock market
The social trading platform eToro is gearing up for its dramatic debut on the Nasdaq. The goal is to raise up to $500 million and achieve a valuation of $4 billion. Ten million shares will be offered to the market, with a price ranging between $46 and $50 per share.
An IPO shared between the company and its shareholders
Out of the 10 million Class A common shares being offered, half will come directly from eToro. The other half will be sold by existing shareholders. Subscribers, led by Goldman Sachs, Jefferies, UBS, Citigroup, and supported by Deutsche Bank, Cantor, and BofA, will have an over-allotment option of 1.5 million additional shares over 30 days.
The Israeli company will list on the Nasdaq Global Select Market under the symbol ETOR. According to Reuters, BlackRock, a market giant with over $10 trillion under management, has already shown interest in $100 million worth of ETOR shares. This move speaks volumes about the platform’s ambitions.
From SPAC failure to traditional IPO
This IPO signals a comeback after a failed attempt in 2022. Back then, eToro had tried to merge with a SPAC to target a valuation of $10.4 billion. The operation fell through due to lack of SEC approval. This time, the strategy is clear: everything has been happening behind the scenes since January, through a confidential filing, before revealing the details on May 6.
In its statement, eToro specifies that the registration statement (Form F-1) has not yet been approved by the SEC: no shares can be sold until it is in effect.
A registration statement on Form F-1 related to the proposed offering of these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.
The selective Nasdaq with crypto
Few crypto companies have successfully IPO’d in the United States. Apart from Coinbase and a few mining giants, few have taken the leap. Circle, the issuer of USDC, had also considered a listing in April, but has since remained silent. With the volatility of the American political climate, and the return of Donald Trump to the discussions, some projects stall, while others accelerate.
eToro, on the other hand, moves forward. And hopes to secure its spot among the few crypto players listed on Wall Street.
