eToro is on track to go public in the US after submitting a confidential filing with the US SEC.
eToro, a commission-free social trading platform, plans to enter the US stock market through an initial public offering (IPO).
According to the Financial Times, the Israeli-based company has already submitted a confidential filing to the Securities and Exchange Commission (SEC). This move could lead to an IPO valuing the company at over $5 billion. This bold plan signals eToro’s growth and highlights the shifting trends in global financial markets.
eToro Breaks Away from London’s Market
Founded in 2007, eToro enables users to trade an array of assets, including stocks and digital assets. The platform has grown to manage $11.3 billion in customer assets across three million accounts as of March 2023. Its tools make trading simple and appealing, attracting users from around the world.
Although eToro’s largest market is the UK, the company decided to list its shares in New York. In a statement, CEO Yoni Assia explained that the US offers better opportunities for attracting global investors and ensuring strong trading activity.
He pointed out that US markets create more awareness and provide deeper liquidity than the UK. While eToro is shifting its focus to the US for its IPO, companies like MoonPay have doubled down on London as a hub for business operations.
This contrast shows how the financial landscape is shifting. Firms make strategic decisions based on their specific goals and the opportunities each market offers.
From SPAC Collapse to a Promising Comeback
This is not eToro’s first attempt at going public. In 2021, the company sought to go public via a $10.4 billion deal with a Special Purpose Acquisition Company (SPAC). However, the plan did not materialize in 2022 due to unfavorable market conditions and less interest in SPAC deals
Despite this setback, eToro has bounced back. In 2023, it raised funds at a valuation of $3.5 billion with backing from major investors like SoftBank and Ion Group. Financial heavyweights like Goldman Sachs, Jefferies, and UBS are helping with the process.
This has laid the groundwork for its renewed IPO ambitions. By filing confidentially with the SEC, eToro can work on its IPO discreetly and share more details closer to the launch. If all plans go well, the IPO might happen as early as the second quarter of this year.
eToro’s move comes as the US IPO market is set for strong activity in 2025. In 2024, 146 companies went public, raising $29.6 billion, more than a 50% increase from 2023. Looking ahead, 210 companies have filed for IPOs, and 110 are getting ready to go public.
Sectors like industrials, technology, and consumer products will lead this trend. As it takes this ambitious step, eToro is poised to cement its position as a leader in the retail trading space. All eyes will be on the platform to see how it navigates the challenges and opportunities of going public in a competitive global landscape.
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