Israel online trading platform eToro has made a confidential filing with the US Securities and Exchange Commission (SEC) for a Wall Street IPO, "The Financial Times" reports. As reported last month by "Globes," the planned company valuation for the flotation is $5 billion.
According to the report, the company plans completing the IPO in the second quarter of 2025, which will be led by Goldman Sachs, Jefferies and UBS.
Most of eToro's activities are in Europe with 75% of its revenue produced there. Consequently, the decision to hold its IPO in New York is seen as a strategic move to broaden its investor base. The company currently has 1,700 employees including 1,000 in Israel.
A second try for eToro
This will be eToro's second attempt to become a public company. Three years ago the company tried to list on Nasdaq through a SPAC merger. The planned merger, which was at a company valuation of more than $10 billion, did not succeed due to the deterioration in market conditions and the regulatory challenges faced by cryptocurrencies.
In September 2024, eToro faced further regulatory challenges after the SEC demanded that it restrict its digital currency activities. The company was forced to pay a $1.5 million fine and its cryptocurrency trading in the US was restricted to three types of cryptocurrencies - Bitcoin, Cash and Ether.
Mixed results
eToro, which was founded in 2007 by Assia brothers Yoni and Ronen , has developed a trading platform for investors in a wide range of assets including commodities, stocks, indices and cryptocurrencies. The company has reported mixed results in recent years. In 2023 eToro reported a net profit of $107 million after losing more than $40 million in 2022. However, 2023 revenue was $630 million, similar to 2022 but half its revenue of $1.2 billion in 2021. In 2023, eToro raised money at a company valuation of $3.5 billion - well below the valuation it will now be seeking in its Wall Street IPO.
Published by Globes, Israel business news - en.globes.co.il - on January 19, 2025.
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