eToro's IPO Price Surges 12% to $52, Raises $6.2 Billion

eToro, a leading global trading platform, has announced a substantial increase in its initial public offering (IPO) price to $52 per share. The company is set to commence trading on the Nasdaq Global Select Market on May 14, 2024, under the ticker symbol "ETOR." This decision follows the successful sale of over 11.92 million shares at the new price, generating approximately $6.2 billion in total.

The IPO price of $52 per share surpasses the initially projected range of $46 to $50 per share. This upward revision indicates robust investor interest and confidence in eToro's business model and growth potential. Initially, the company intended to issue 10 million shares, but the heightened demand led to the issuance of 11.92 million shares, resulting in a larger-than-anticipated capital raise.

Founded in 2007, eToro has a notable history in the financial technology sector. The company had previously attempted to go public through a merger with a special purpose acquisition company (SPAC) backed by Betsy Cohen, with an estimated valuation of $10.4 billion. However, this plan did not come to fruition in 2022. In September 2023, eToro reached a settlement with the U.S. Securities and Exchange Commission (SEC), agreeing to limit its cryptocurrency offerings in the U.S. to Bitcoin, Bitcoin Cash, and Ethereum, addressing allegations of operating as an unregistered broker-dealer and clearing agency.

The successful IPO represents a pivotal moment for eToro, which has been expanding its services and user base globally. The company's platform enables users to trade a variety of assets, including stocks, cryptocurrencies, and commodities, making it a versatile option for investors. The increased capital from the IPO is likely to be utilized to further develop the platform, expand its services, and enter new markets.

The IPO is being underwritten by a consortium of leading investment banks, including Goldman Sachs, Jefferies, UBS, and Citigroup. These financial institutions have played a crucial role in facilitating the IPO process and ensuring its success. The strong backing from these firms underscores the confidence in eToro's future prospects and its potential to continue growing in the competitive financial technology landscape.

The listing on the Nasdaq Global Select Market is expected to provide eToro with greater visibility and access to a broader range of investors. The company's decision to list on this prestigious exchange reflects its commitment to transparency, regulatory compliance, and high standards of corporate governance. As eToro begins its journey as a publicly traded company, it will be closely watched by investors and industry analysts alike, who will be eager to see how it performs in the public markets.