eToro Prices IPO at $52, Raises $620M, Valued at $50B

eToro Group, a leading social investment platform, has successfully priced its initial public offering (IPO) at $52 per share, exceeding the initial upper limit and raising a total of $620 million. The company, along with some of its shareholders, sold 11.92 million shares in the offering. This significant fundraising effort underscores the growing interest and confidence in the social trading and investment sector.

The IPO was well-received, with major institutional investors expressing interest in purchasing eToro shares worth up to $1 billion at the offering price. This interest highlights the platform's appeal and potential for growth. The successful IPO not only provides eToro with substantial capital but also validates its business model and market position.

The funds raised from the IPO will likely be used to support eToro's expansion plans, enhance its technology infrastructure, and further develop its product offerings. The company has been at the forefront of democratizing investing by making it accessible to a broader audience through its user-friendly platform and innovative features. With the additional capital, eToro is poised to continue its growth trajectory and solidify its position as a leader in the social investment space.

The IPO's success is a testament to the increasing popularity of social trading platforms, which allow users to follow and copy the trades of experienced investors. This model has proven to be particularly attractive to retail investors who seek to leverage the expertise of others while engaging in the financial markets. eToro's ability to attract significant investment and interest from major players in the financial industry further cements its status as a key player in the evolving landscape of digital investing.

eToro, originally planned to issue 10 million shares with a price range of $46 to $50 per share, ultimately priced its shares above the upper limit due to overwhelming demand. This reflects the strong market appetite for the company's shares and its robust financial performance. The company's market capitalization, based on the issued shares, is approximately $43 billion. When considering employee stock options and restricted stock units, the fully diluted valuation is close to $50 billion.

This successful IPO marks a significant rebound for eToro, which had previously paused its listing plans due to market volatility related to tariffs. Following the announcement of additional tariffs by the former U.S. President, eToro was among the first companies to resume its IPO preparations. The company's ability to navigate through challenging market conditions and successfully execute its IPO demonstrates its resilience and strategic agility.

In the IPO, eToro sold 5.96 million shares, while related parties, including Spark Capital, BRM Group, Andalusia Private Capital, CM Equities SP, and key executives such as co-founder and CEO Yoni Assia and his brother Ronen Assia, sold an additional 5.96 million shares. The company also reserved 500,000 shares for a directed share program. eToro, founded in 2007, offers a platform for trading various assets, including stocks and cryptocurrencies, and provides copy-trading features.

eToro's financial performance has been impressive, with net revenue of $787 million and net income of $192 million in 2024, representing a significant increase from the previous year's $557 million in revenue and $15.3 million in net income. The company completed a funding round in 2023, led by ION Group and SoftBank Vision Fund 2, with a valuation of $3.5 billion. However, due to sanctions, some shares held by SBT Venture Fund I, which is associated with the Russian Federal Savings Bank, are subject to restrictions on voting rights, share transfers, and new share acquisitions.

The IPO was led by major investment banks, including Goldman Sachs, Jefferies Financial Group, UBS Group, and Citigroup. eToro plans to list its shares on the Nasdaq under the ticker symbol "ETOR." This successful IPO not only provides eToro with the necessary capital to fuel its growth but also positions it as a key player in the rapidly evolving digital investment landscape. The company's innovative approach to social trading and its commitment to making investing accessible to a broader audience are likely to drive its continued success in the years to come.