eToro Eyes IPO With Price Tag Exceeding $3.5 Billion
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Israel’s eToro is assessing the option of an Initial Public Offering (IPO) with a valuation above $3.5 billion, as stated by the brokerage’s Chief Executive Officer Yoni Assia. In the past, the firm’s efforts to go public were unsuccessful, when it signed a deal of $10.4 billion with a blank check firm, showing a large valuation slash by the brokerage.
The Broker Has Not Ruled Out London As A Potential Market For An IPO
As the broker is mainly based in the UK, its strategic assessment of the US for public listing is fueled by the abundant market liquidity. However, the broker has not dismissed London as a possible market for an IPO.
Assia stated that Retail investors in Germany and the UK are seeking to trade US shares. He added that UK customers might also want to trade UK stocks, however, only a few of their international customers would trade UK stocks. He further stated that there is something in the United States market that generates a pool of both abundant awareness and deep liquidity for assets trading in the United States.
Unlike the earlier effort, the broker now considering an IPO. Regardless of Assia’s confirmation, the broker has not yet disclosed any details.
eToro Seeks To Become A Publicly Traded Company
eToro, headquartered in Israel, has successfully extended its presence into European markets, generating 70% of its revenue. Established in 2007, it originally gained recognition in the copy-trading space but has since expanded its services with crypto and stocks. The platform has approximately 3 million accounts and oversees around $11.3 billion in customer assets.
In 2021, eToro revealed its intention to become a publicly traded company when the broker made an agreement with Betsy Cohen’s Special Purpose Acquisition Firm for a reverse merger.
However, the deal collapsed in July 2022 due to the inability of the two parties to reach a concluded agreement despite extending the deadline multiple times. Following the unsuccessful reverse merger attempt to go public, eToro secured $250 million from prominent investors such as Ion Group and SoftBank, at a $3.5 billion valuation.
Assia’s intention to make eToro a publicly traded company is now driven by the current market conditions at their peak. It follows the footsteps of Robinhood, which rode the tech frenzy listed in New York in 2021. However, the two firms’ priorities differ despite offering trading services.
