Israeli online trading platform eToro's shares are being offered in secondary deals at a 35%-40% discount on last month's secondary deal in which $120 million worth of shares were sold at a company valuation of $2.5 billion, sources inform "Globes."
Last month's deal already reflected the difficult market conditions, with a valuation considerably lower than the $3.5 billion at which eToro raised $250 million in March 2023. Shares are now being offered at $60 per share in small secondary deals, valuing the company at $1.7 billion.
In the first half of 2023, eToro reported that 2022 revenue had fallen to $631 million from $972 million in 2021. While the company's revenue grew during the Covid pandemic, due to the significant rise in online trading, as the virus faded, online trading fell accordingly.
In March, eToro cofounder and CEO Yonia Assia said, "Toward the end of the first quarter of 2023, we saw an improvement in total revenue and profitability compared to the last quarter of 2022, as well as an increase in the volume of trading activity among our customers." He also said at the time that "2023 started positively when the markets responded positively to 'less bad' news and trading among private investors reached an all-time high."
eToro said in response to this report, "Every transaction in eToro shares is required to be registered in the company's registry. The company is not aware of any transaction that was made after the transaction we announced last month."
Published by Globes, Israel business news - en.globes.co.il - on August 24, 2023.
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