After a mixed start to the year, the US IPO market saw an increase in activity in recent months, led by the technology and healthcare industries. As the tariff-induced trade tensions subside, more businesses are expected to enter public markets. eToro Group Ltd. is among the initial companies seeking an IPO since the new import tariffs were imposed.
10 Mln Shares
eToro, an Israel-based retail trading platform, recently filed papers with the Securities and Exchange Commission to offer 10 million shares in an initial public offering. The company is offering five million shares, while the remaining shares will be offered by selling shareholders. The estimated offer price is between $46 per share and $50 per share. The company has applied to list on the Nasdaq Global Select Market under the symbol ETOR. The group of underwriters is led by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.
The offering is expected to generate net proceeds of around $217.7 million, based on an assumed offer price of $48.00 per share, which is the midpoint of the price range. The management plans to use the proceeds primarily for general corporate purposes, including working capital, operating expenses, and capital expenditures. A portion of the proceeds may be used to make acquisitions or investments.
The Company
Founded in 2007 by Yoni Assia and his brother Ronen, eToro is on a mission to transform the retail investing experience by pioneering social investing. It has built a collaborative investment community designed to provide users with the educational resources and tools they need to grow their knowledge and wealth.
As of December 31, 2024, the company had 3.5 million funded accounts across its global footprint of 75 countries. For the year ended December 31, 2024, eToro generated $12.64 billion in revenue and income — a more-than-threefold growth from the previous year. Driven by the strong top-line growth, net profit increased sharply to $192.4 million or $8.76 per share from $15.3 million or $0.72 per share in 2023.