eToro Pushes For $4 Billion Goal In New IPO Plan
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eToro Group has said it is now planning to raise money by selling shares in the United States. The company has begun steps to float on the stock market in New York. It hopes to reach a valuation of $4 billion through this process.
The company stated that it will list 10 million Class A shares for the public to buy. It said half of these shares will come directly from eToro, while the rest will be sold by previous holders of shares in the company.
eToro explained that each share may be sold between $46 and $50. If this goes well, the company might raise $500 million from the sales. The firm said it has applied to list its shares on Nasdaq Global Select Market using the ticker name “ETOR.”
Major Banks Help With eToro’s Share Sale Plan
eToro has picked well-known banks to help with the share sale. These include Goldman Sachs, UBS Investment Bank, Citigroup, and Jefferies. Other banks such as Bank of America, TD Securities, and Deutsche Bank are also part of the group.
According to reports, BlackRock is interested in buying shares worth as much as $100 million during eToro’s share sale. BlackRock is one of the biggest investment companies in the world. Because of its size and importance, many investors pay attention when it shows interest in something. Its plan to join the share sale is likely to draw more investors to look at eToro’s offer. This could help build more trust and excitement around the share sale.
eToro said it will also allow underwriters to buy 1.5 million more shares if needed. The company shared that this extra time will last for 30 days. This step is helpful in case many investors want to buy the shares quickly. If the shares sell faster than expected, the underwriters can use this chance to sell more and meet the high demand.
eToro’s Share Sale Awaits Approval From the U.S. Securities and Exchange Commission
eToro has already filed papers with the U.S. Securities and Exchange Commission (SEC). These papers must be approved before the shares can be sold. The company said no shares will be sold until this approval is given.
The company added that this news is not an offer for investors to buy or sell shares, as it is not allowed by law. Everything still depends on the market and rule changes.
eToro first filed privately with the SEC. Then in late March, it shared the plans with the public. This is part of the steps a company takes when it wants to join the stock market. This is not the first time eToro has planned to go public. In 2021, the company had tried to do this through a $10.4 billion deal, but it was later dropped because of market troubles.
Two years ago, eToro was able to receive $250 million from investors. At that time, the firm said it was valued at $3.5 billion. Near the end of that year, it also got approval to offer its services in New York. The company reminded everyone that shares cannot be sold yet. The sale will only happen if market conditions are good and if the U.S. regulators approve everything.
