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eToro, a crypto-friendly trading platform, has officially filed the documentation for an IPO in the United States, aiming for a listing on Nasdaq with an estimated valuation of 5 billion dollars.
This move marks a new attempt by the company to go public, after a previous failed attempt in 2021. The IPO will attract the attention of major investment banks such as Goldman Sachs, Jefferies, UBS, and Citigroup, which will act as lead managing bookmakers.
The company has filed the F-1 form with the United States Securities and Exchange Commission (SEC) and plans to list its Class A common shares under the ticker symbol “ETOR” on the Nasdaq Global Select Market.
The application was submitted on March 24, 2024, and follows a previous confidential filing made in January. If the operation is successful, eToro could be listed by the second quarter of 2025.
eToro: a new IPO attempt after the 2021 failure
This is not the first time that eToro attempts to go public in the United States. In 2021, the company had announced its intention to list through a merger with Fintech Acquisition Corp V, a special purpose acquisition company (SPAC).
At the time, the estimated valuation of eToro exceeded 10 billion dollars, but the plan was canceled in mid-2022 due to unfavorable market conditions.
Despite the fact that the United Kingdom is currently its largest market, eToro views the listing in the United States as a strategic opportunity to reach a broader audience of investors.
According to the founder and CEO, Yoni Assia, the choice of the U.S. market is motivated by the fact that:
“Something in the US market creates a combination of liquidity and awareness for the assets that are traded there.”
After the failure of the listing in 2021, eToro has nevertheless continued to expand its operations strengthening its finances.
In 2023, the company raised 250 million dollars in a funding round, achieving an overall valuation of 3.5 billion dollars. However, with the new IPO, the valuation could exceed 5 billion dollars.
Founded in 2007, eToro is one of the most well-known trading platforms worldwide, particularly appreciated by novice investors for its intuitive interface and accessibility.
In addition to trading stocks and commodities, the platform has focused heavily on cryptocurrencies, becoming one of the first regulated platforms in Europe to offer services on Bitcoin (BTC) as early as 2013.
Thanks to its user-friendly approach, eToro has grown rapidly, attracting millions of users worldwide.
The strength of the company lies primarily in its innovative features, such as copy trading, which allows users to automatically replicate the strategies of experienced investors.
“`htmlWhat does this IPO mean for the financial sector?
“`The entry of eToro into the stock market could have significant implications for the trading and cryptocurrency sector.
The market of digital investment platforms is highly competitive and dominated by giants like Robinhood and Coinbase, both already listed on Nasdaq.
Furthermore, with the strong interest of major investment banks, the IPO of eToro highlights how Wall Street is increasingly accepting the cryptocurrency sector and digital trading platforms.
Analysts hypothesize that the success of the IPO could stimulate new listings by other fintech and crypto-friendly companies in the coming years.
The rise of eToro coincides with a period of increasing regulation of the cryptocurrency sector, especially in the United States. The approval of its IPO by the SEC could represent a positive signal for the entire sector.
If the listing is successful, eToro could further accelerate its expansion, investing in new technologies and expanding its range of financial services.
With a valuation that could exceed 5 billion dollars, the company would consolidate its role as a leader in online trading.
However, the challenges are not lacking. The fintech sector is subject to strong market fluctuations and stringent regulations, factors that could influence the company’s long-term success.
Furthermore, competing with giants like Robinhood and Coinbase will require innovative strategies to acquire new users and retain existing ones.
Conclusion
The decision of eToro to list on Nasdaq represents a strategic move to strengthen its position in the global financial market.
With an estimated valuation of 5 billion dollars, the success of the IPO could mark a turning point for the trading platforms and cryptocurrency sector.
There are still unknowns related to market conditions and U.S. regulations, but the interest shown by major investment banks suggests a growing recognition by traditional finance.
If the listing is successful, eToro could establish itself as one of the main players in digital trading in the near future.
English (US) ·