Trading platform eToro is poised to raise approximately $620 million in its U.S. Initial Public Offering (IPO) after pricing shares above the initially marketed range ahead of its May 14 debut on Nasdaq.

eToro Prices Shares Above Expectations

In a significant move, eToro and its existing shareholders will sell 11.92 million shares at $52 per share. This price exceeds the previously marketed range of $46 to $50 and is higher than the original plan to sell 10 million shares. The IPO values the company at approximately $4.3 billion, or nearly $5 billion on a fully diluted basis.

Institutional investor interest is also strong, with funds managed by BlackRock expressing intent to purchase up to $100 million worth of shares. This development marks a major comeback for the Israel-based fintech firm, which had paused its IPO plans in April due to market uncertainties linked to shifting tariff policies. Notably, eToro had previously explored a $10.4 billion Special Purpose Acquisition Company (SPAC) deal in 2022, but the arrangement fell through.

eToro’s Financial Performance and Services

Founded in 2007, eToro has carved a niche in the trading space by offering stock and cryptocurrency trading, alongside its popular copy trading features. The company reported a net income of $192 million for 2024, a substantial increase from $15.3 million in the prior year. Additionally, its net contribution rose to $787 million, up from $557 million during the same period, as disclosed in its IPO filing.

Key Financial Highlights:

  • 2024 Net Income: $192 million (up from $15.3 million in 2023).
  • Net Contribution: $787 million (up from $557 million).

eToro’s business model focuses on simplifying access to both traditional and digital assets, catering to a broad audience of investors, including beginners and intermediate traders.

Regulatory Challenges and U.S. Crypto Trading Limitations

In 2023, eToro reached a settlement with the U.S. Securities and Exchange Commission (SEC) for operating as an unregistered broker. As part of the agreement, the platform limited its U.S. cryptocurrency trading offerings to three major assets: Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH). This decision reflects the increasing scrutiny faced by crypto-focused firms operating in regulated markets.

IPO Backed by Major Financial Institutions

The IPO is being led by prominent financial institutions including Goldman Sachs, Jefferies, UBS, and Citigroup. Additionally, eToro has allocated 500,000 shares for a directed share program. However, sanctions-related restrictions currently prevent shares from being distributed to Russia-affiliated SBT Venture Fund I, which holds over 6% of the company’s Class A shares.

eToro’s Nasdaq Debut: A Milestone for Fintech

eToro shares are set to begin trading on May 14 under the ticker symbol ETOR on the Nasdaq Global Select Market. The IPO’s success underscores growing investor confidence in capital markets, especially for fintech companies that bridge traditional and digital asset exposure. eToro’s ability to navigate regulatory challenges while maintaining strong financial performance signals its potential as a key player in the evolving financial ecosystem.

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