https://x.com/eToro/status/1922724289926615142
eToro, a fintech company offering a trading platform for stocks, cryptocurrencies, and other assets, made its Nasdaq debut on Wednesday. The company’s shares opened at $69.69, a 34% increase from its initial public offering (IPO) price of $52. By the end of the trading day, eToro’s stock closed at $67 per share, up nearly 29%, resulting in a market capitalization of over $5.4 billion.
The Israel-based company sold approximately six million shares in its IPO, surpassing the anticipated range of $46 to $50. Existing investors also sold nearly six million additional shares. At the IPO price, eToro was valued at approximately $4.2 billion.
https://x.com/eToro/status/1922719795172041022
https://x.com/sparkcapital/status/1922729746640613383
eToro’s successful IPO is seen as a significant indicator of renewed investor interest in the market, especially after a period of low IPO activity. Many investors had anticipated a surge in IPOs following President Donald Trump’s return to office in January, but tariff concerns had temporarily dampened the market. CEO Yoni Assia commented on the company’s decision to go public, stating, “We felt that we’re seeing the light at the end of the tunnel of the correction in the markets.” He added that the company was waiting for a key measure of market volatility to stabilize amidst tariff concerns.
etoro shares soar on Nasdaq debut
eToro had initially planned to go public in 2021 through a merger with a special purpose acquisition company (SPAC) that would have valued it at more than $10 billion. However, these plans were shelved in 2022 due to plunging equity markets.
Despite this setback, the company remained focused on pursuing a traditional IPO. Founded in 2007 by Yoni and Ronen Assia and David Ring, eToro generates revenue through trading-related fees and non-trading activities such as withdrawals. The company’s net income skyrocketed to $192.4 million last year from $15.3 million in 2023.
Notably, the business has experienced considerable growth in cryptocurrency trading, with revenue from crypto assets more than tripling to over $12 million in 2024. Spark Capital is eToro’s largest outside investor, holding 14% control after the offering, followed by BRM Group at 8.7%. CEO Yoni Assia has a personal stake of 9.3%.
The successful debut of eToro marks a hopeful sign for the IPO market, potentially encouraging other companies to pursue public offerings.
