Israeli brokerage firm eToro is once again contemplating a public offering with a valuation exceeding $3.5 billion, as revealed by CEO Yoni Assia in an interview with the Financial Times. This marks a significant shift from its previous attempt, which involved a $10.4 billion deal with a blank check company that ultimately fell through.
While eToro primarily operates in the UK, it is now considering listing in the US due to the market’s substantial liquidity. Nevertheless, London remains a potential option for the IPO.
Assia highlighted the demand from retail investors in the UK and Germany for trading US stocks, emphasizing the appeal of the US market’s liquidity and awareness of assets. Unlike before, eToro is now exploring an initial public offering, although specific details are yet to be disclosed.
Founded in 2007 and headquartered in Israel, eToro has successfully expanded into European markets, generating 70 percent of its revenue from the continent. Initially known for copy-trading, the platform has diversified its offerings to include stocks and cryptocurrencies, boasting approximately 3 million accounts and managing around $11.3 billion in customer assets.
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The decision to pursue an IPO was initially made public in 2021 when eToro entered a deal with Betsy Cohen’s Special Purpose Acquisition Company, which ultimately fell through in July 2022 due to unresolved issues despite multiple deadline extensions.
Following the failed merger attempt, eToro secured $250 million from investors, including SoftBank and Ion Group, valuing the company at $3.5 billion.
Assia’s push for an IPO is fueled by favorable market conditions, mirroring Robinhood’s strategy during the 2021 tech frenzy. However, he emphasizes the differences between the two companies, particularly in terms of customer base and geographic focus. While Robinhood’s clientele is primarily US-based, eToro serves mainly European, UK, and Asian markets, presenting unique challenges in providing access to US IPOs in European markets.
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