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Shares of stock brokerage platform eToro popped of their Nasdaq debut on Wednesday after the corporate raised almost $310 million in its initial public offering.
The stock opened at $69.69, or 34% above its IPO, pushing its market cap to $5.6 billion. Shares were last up greater than 30%.
The Israel-based company sold nearly six million shares at $52 each, above the expected range of $46 to $50. Almost six million additional shares were sold by existing investors. On the IPO price, the corporate was valued at roughly $4.2 billion.
Wall Street is seeking to the Robinhood competitor for signs of renewed interest in IPOs after an prolonged drought. Many investors saw President Donald Trump’s return to the White House as a catalyst before tariff concerns led firms to delay their plans.
“We felt that we’re seeing the sunshine at the top of the tunnel of the correction within the markets,” CEO Yoni Assia said of eToro’s decision to go public in an interview with CNBC. The corporate was in search of a key measure of market volatility referred to as the CBOE Volatility Index to stabilize within the wake of tariff concerns, he added.
Etoro is not the only company attempting to check the waters. Fintech company Chime filed its prospectus with the U.S. Securities and Exchange Commission on Tuesday, while digital physical therapy company Hinge Health kickstarted its IPO roadshow, and said in a filing it goals to boost as much as $437 million in its offering.
EToro had previously filed to go public in 2021 through a merger with a special purpose acquisition company, or SPAC, that may have valued it at greater than $10 billion. It shelved those plans in 2022 as equity markets nosedived, but remained focused on an eventual IPO.
EToro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. The corporate makes money through trading-related fees and nontrading activities reminiscent of withdrawals. Net income increased almost thirteenfold last yr to $192.4 million from $15.3 million in 2023.
The corporate has steadily built a growing business in cryptocurrencies. Revenue from crypto assets greater than tripled to upward of $12 million in 2024, and one-quarter of its net trading contribution stemmed from crypto last yr. That’s up from 10% in 2023.
EToro said that for the primary quarter, it expects crypto assets to account for 37% of its commission from trading activities, down from 43% a yr earlier.
Spark Capital is the corporate’s biggest outside investor, with 14% control after the offering, followed by BRM Group at 8.7%. CEO Yoni Assia controls 9.3%.
