EToro files confidentially for US IPO, targeting a USD 5 bln valuation

The IPO, which could take place as early as the second quarter of this year, is expected to value the company at over USD 5 billion, according to sources familiar with the matter. EToro’s decision to pursue a US listing reflects ongoing challenges for the London market in attracting major company flotations. The platform, which serves a global customer base with its largest market in the UK, has opted for the US to gain wider access to investors. 

In an interview with the Financial Times last year, eToro officials noted that the US market offers deeper liquidity and greater visibility for traded assets compared to the UK. They explained that a US presence would better align with the company’s investor base, as ‘very few of their global clients would trade UK shares.’

eToro’s business and valuation history

Founded in 2007, eToro enables customers to trade a variety of assets, including stocks and cryptocurrencies. As of March 2023, the platform managed USD 11.3 billion in customer assets across three million accounts, according to the Financial Times. 

The company previously attempted to go public in 2021 through a USD 10.4 billion merger with a special purpose acquisition company (SPAC). However, the deal was abandoned in 2022 amid a wider market downturn for SPACs. In a funding round last year, eToro was valued at USD 3.5 billion after raising USD 250 million from investors such as SoftBank and Ion Group. 

Confidential filings allow companies to prepare for a public listing without immediately disclosing sensitive details. If eToro proceeds as planned, the New York IPO could mark a significant step forward for the company. Investment banks including Goldman Sachs, Jefferies, and UBS are reportedly advising on the offering.