Israeli trading platform eToro, founded by Yoni and Ronen Assia, has filed a prospectus with the US Securities and Exchange Commission for an IPO in New York. According to the prospectus, the company’s revenue more than tripled last year, and net profit jumped thirteen-fold.
"Globes" has learned that eToro seeks to raise $300-400 million at a pre-money valuation of $4.5 billion. "Globes" reported in the past that the company was seeking a valuation of $5 billion. It is believed to have held meeting with many investors in recent weeks, and demand for the offering is clearly high.
Behind the growth in eToro’s revenue lay the expectation of Donald Trump’s election as president of the US in the second half of last year, and its eventual realization, which raised optimism among cryptocurrency investors and impacted revenue in November and December.
90% of revenue from crypto trading
According to the prospectus, eToro’s revenue last year was $12.6 billion, and net profit was $192 million, representing impressive growth over 2023, when revenue was $3.89 billion and net profit was $15.3 million. According to Bloomberg, 96% of the company’s revenue derived from trading in cryptocurrencies.
This is not the first time that eToro has sought to go public. In 2021, it planned a merger with a SPAC at a valuation of $10.4 billion, but as the stock market, particularly technology stocks, cooled in 2022, the plan was shelved. That year, eToro reported negative EBITDA of $42.8 million, but in 2023 this switched to positive EBITDA of $117.1 million, and last year’s EBITDA was $303 million.
Rival platform Robinhood (Nasdaq: HOOD) is currently traded at a multiple of 35 on its EBITDA. On that basis, if eToro were a public company, it should have a market cap of $10.6 billion.
Goldman Sachs, Jefferies, UBS, and Citigroup are acting as lead managing bookrunners. Deutsche Bank Securities, BofA Securities, Cantor, Citizens JMP, Keefe, Bruyette & Woods, Mizuho, and TD Securities are acting as additional book-running managers. Canaccord Genuity, Moelis & Company, Needham & Company, Rothschild & Co and Susquehanna Financial Group are acting as co-managers.
Published by Globes, Israel business news - en.globes.co.il - on March 25, 2025.
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