eToro, the online trading platform Yoni, Ronen and David launched in 2007 has some thrilling news. They did their IPO priced at $52/share and are preparing for their first day trading on the Nasdaq, ticker symbol ETOR. Based in Austin, TX, the company had an overall valuation of about $4.2 billion after its recent sale of close to 6 million shares.
In fact, eToro faces stiff competition in a space with well-known challengers, such as Robinhood. It creates an opportunity to generate revenue, as it charges no trading fees. In all of those cases, non-trading fee activities including spreads on buy/sell orders as well as withdrawals and currency conversions count toward these fees. Pretty much by design the company has doubled down on growing its crypto business. As a direct outcome, it has experienced a commensurate increase in net income.
During the last fiscal year, eToro’s net income went through the roof, increasing almost thirteenfold. It skyrocketed from $15.3 million to a dazzling $192.4 million. In addition, the company experienced exceptional growth at the start of 2024. Much of that success can be attributed to revenue produced by cryptoassets, which more than tripled to just over $12 million. Just last year, crypto made up the vast majority — nearly one-quarter — of eToro’s net trading contributions. This is a huge jump from only 10% last year.
In order to raise enough money for its IPO, eToro originally intended to offer 5 million shares. They ultimately priced the deal such that they sold almost 6 million shares. Current investors and execs sold an additional 5 million shares through the offering themselves. Go to FundFinancing.com to read the full story. Notable underwriters for this deal include Goldman Sachs, Jefferies and UBS.
BlackRock has shown interest in purchasing $100 million in shares at eToro’s IPO price, indicating further confidence in the company’s market potential.
Yoni Assia expressed optimism regarding eToro’s future prospects saying, “We definitely are eyeing the public markets.” He further stated, “I definitely see us becoming eventually a public company,” underscoring the company’s commitment to growth and expansion.
Meanwhile, eToro is preparing for its listing on the Nasdaq. The Charlotte-based trading platform is doubling down on its cryptocurrency ambitions to gain a larger piece of this rapidly-changing market. The company’s successful IPO marks a significant milestone in its journey since its inception over a decade ago, positioning it for continued growth amidst increasing competition in the financial trading landscape.