eToro has made a successful debut on NASDAQ with significant stock price gains, signaling an encouraging trend for fintech IPOs.
eToro's Initial Public Offering
eToro opened trading on NASDAQ at $69.69 per share, well above its IPO price of $52. By the end of the day, shares settled around $68, reflecting a 30% gain. The company raised nearly $310 million by selling close to 6 million shares. The strong demand led eToro to price its IPO above the original range of $46-$50.
Focus on Profitable Growth
CEO Yoni Assia emphasized that the company was not interested in hype. Unlike other fintechs, eToro waited for the right moment to hit the market, focusing on sustainable growth and profitability. In 2024, eToro reported net income of $192 million, a substantial increase from $15 million the year prior. Revenue surged to over $12 billion, and the platform now boasts 40 million users.
IPO's Impact on the Fintech Market
eToro's successful debut could reopen the window for other fintech firms, like Chime, to file for IPOs. The market has shown that there is still demand for the right kind of public offerings. This event served as a litmus test for the market, highlighting that companies with growth, profit, and a strong user base still attract investor interest.
The eToro IPO not only marks a successful start for the company but also signals to other market players that there is still a strong appetite for public listings.
