MW Online brokerage EToro moves ahead with IPO despite a mostly barren market for new issues

By Steve Gelsi

The company plans to raise up to $500 million and would be valued at up to $4 billion, as it looks to debut on the Nasdaq under the ticker symbol 'ETOR'

Profitable online cryptocurrency broker EToro Group Ltd. on Monday marked a potential thaw in the frozen market for initial public offerings by filing plans to raise up to $500 million.

EToro had been among several higher-profile companies, including buy-now-play later company Klarna Group (KLAR), expected to revive the IPO market in 2025. Klarna, however, shelved its deal in recent weeks in the face of market volatility caused by tariffs and other unresolved economic issues.

The have been no IPOs from an operating company that raised more than $100 million on a major U.S. exchange since April 1, when Smartstop Shelf Storage REIT Inc. $(SMA)$ raised $810 million by pricing 27 million shares at $30 a share. On Monday, that stock closed trading at $35.50 a share.

The Renaissance IPO ETF IPO has run up about 23% since it closed at a 17-month low on April 8, while the S&P 500 index SPX has rallied around 13% over the same time.

Read: Why this drone maker is braving turbulent markets for an IPO

With its underwriters potentially taking heart from a bounceback in the stock market in recent sessions, Israel- and New Jersey-based EToro said Monday it plans to offer 10 million shares at an estimated price range of $46 to $50 a share.

Based on up to 80.87 million shares outstanding after it goes public, EToro would have a market capitalization of $4 billion if the IPO prices at the top end of the expected range.

The stock is expected to trade on the Nasdaq COMP under the ticker symbol "ETOR." (ETOR)

Goldman Sachs, Jefferies, UBS Investment Bank and Citigroup are lead underwriters for the deal.

EToro's 2024 net income jumped to $192.4 million on revenue of $12.64 billion, compared with net income of $15.26 million on revenue of $3.43 billion in 2023.

As of Dec. 31, EToro said it had 3.5 million funded accounts and a footprint in 75 countries.

"Our mission is to open the global markets, connect our users to leading investors and give them the tools they need to grow their knowledge and wealth," the company said.

EToro co-founder and Chief Executive Yoni Assia co-wrote the Colored Coins whitepaper in 2012 that laid out a method for representing and managing real-world assets on the Bitcoin (BTCUSD) blockchain.

BlackRock Inc. $(BLK)$, as a strategic partner, has agreed to buy up to $100 million of EToro's Class A common shares at the IPO price.

EToro and BlackRock have teamed up to launch five portfolios "tailored to different risk profiles, EToro said.

"We ... partner with strategic brands such as X, BlackRock and Nasdaq on co-branding marketing activity aimed at providing the most timely, relevant, engaging and relatable content to our users and prospective users," the company said.

Principal shareholders of EToro include Spark Capital, BRM Group Ltd. of Israel and Turkoman Partners L.P.

-Steve Gelsi

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May 05, 2025 16:21 ET (20:21 GMT)

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