eToro has announced its initial public offering (IPO) on Nasdaq, setting the share price at $52, surpassing initial expectations. The IPO involves the sale of 11.9 million shares.
Overview of eToro's IPO
The share price of eToro's IPO is set at $52, exceeding the initial expectations of $46-$50. This offering is expected to raise around $310 million, valuing eToro at approximately $4.2 billion. A total of 11.9 million Class A common shares are being sold, with 5.96 million shares being sold by eToro, while the remainder belongs to existing shareholders. Trading of the shares is set to begin on Nasdaq on May 14, 2025, under the ticker symbol 'ETOR', with the closing date scheduled for May 15, 2025.
eToro's Performance and Competition
eToro has shown strong financial performance, with profits rising from $15 million in 2023 to $192 million in 2024. Adjusted EBITDA grew from $117 million to $304 million, representing a 159% increase. Additionally, net contribution increased by 41%, reaching $787 million compared to $557 million the previous year. The total commission surged by 46%, going from $639 million in 2023 to $931 million in 2024. eToro is now set to compete with platforms like Robinhood, which has also been trading publicly.
Plans of Other Financial Companies
Other companies in the financial sector are also looking to go public on Nasdaq. For instance, digital bank Chime has filed to go public under the ticker 'CHY'. While the exact share price and number of shares are still uncertain, some experts predict that Chime's IPO could raise as much as $1 billion. Additionally, crypto firms like Kraken are reportedly considering going public in the near future.
The IPO of eToro on Nasdaq marks an important step for the company, demonstrating strong growth rates and competition with other financial platforms. A successful share offering could set a precedent for other companies in the financial and crypto sectors.
