Online
trading platform eToro is planning to launch its U.S. initial public offering
as early as this week, after previously postponing its listing amid market
volatility triggered by Trump’s tariff announcements, according to people
familiar with the matter.
eToro Considers US IPO
Launch This Week Following Tariff-Related Delay
The
Israel-based investment platform, which allows users to trade stocks and
cryptocurrencies while following top investors, had filed paperwork with the
Securities and Exchange Commission (SEC) in
late March but paused its plans in early April when President Trump’s
tariff announcements sent markets into temporary turmoil.
In April,
the company announced it
was “evaluating market conditions” and suspended its IPO roadshows.
However, Bloomberg now reports
that the company may go public on Wall Street as early as the beginning of May.
If EToro
Group Ltd. proceeds with the listing, it would be among the first companies to
resume IPO plans after the market disruption caused by the April
2 tariff announcements, which briefly spiked the VIX volatility index and
halted numerous deals.
Net Income of $192M
The company
reported significant financial growth in its SEC filing, with total commission
revenue reaching $931 million in 2024 and net income of $192 million,
substantially higher than the $639 million in commissions and $15.3 million in
net income recorded the previous year. When
the company first filed for the Nasdaq listing in January, it was valued at $5
billion.
“After
several weeks of escalating rhetoric and tariff threats, both the U.S. and
China recently indicated their willingness to resume working-level negotiations,”
commented Linh Tran, Market Analyst at
XS.com. “The U.S. expressed an interest in reopening dialogue to avoid further
escalation, while Beijing signaled it was ready to engage in
“constructive” discussions. These conciliatory tones helped ease
investor concerns and provided a tailwind for risk assets like equities.
eToro vs. Robinhood
eToro’s
potential IPO comes as competitor
Robinhood Markets Inc. has seen its shares climb more than 15% over the
past month, potentially signaling favorable market conditions for trading
platforms.
Recently, eToro
joined Robinhood in the stock lending space, offering a new service to
investors in Europe. The fintech is launching a program that allows users in
the UK and across Europe to earn extra income by lending out their shares.
Earlier
this year, both
companies also introduced the $TRUMP token—a meme cryptocurrency positioned
as the official digital asset of the current president.
Second Time’s a Charm?
This marks eToro’s
second attempt at going public. The company previously tried
to enter public markets through a SPAC merger that valued it at $10.4
billion, but that deal fell through.
More
recently, eToro
completed a funding round in 2023 that valued the company at
$3.5 billion, with backing from investors including ION Group and SoftBank
Vision Fund 2.
According
to the company’s filing, major shareholders with over 5% ownership include
affiliates of Spark Capital, Andalusian Private Capital, CM Equities SP, and
BRM.
Goldman
Sachs, Jefferies Financial Group, UBS Group, and Citigroup are leading the
offering. If the IPO proceeds, EToro shares would trade on the Nasdaq Global
Select Market under the ticker symbol “ETOR.”
The sources
cautioned that no final decisions have been made and EToro could still delay
its offering depending on market conditions. A representative for EToro
declined to comment on the potential IPO timeline.
This article was written by Damian Chmiel at www.financemagnates.com.
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