After a months-long delay caused by tariff-related
market swings, EToro is set to launch its U.S. IPO with stronger-than-expected
investor interest, potentially pricing above its marketed range, Bloomberg
reported.
The renewed momentum offers a glimpse into the
shifting sentiment around tech listings and retail trading platforms in a
post-volatility climate. The Israel-based trading and investment platform,
along with several early investors, plans to offer 10 million shares priced
between $46 and $50 each.
However, according to sources cited by Bloomberg, demand for the IPO has already exceeded supply several times over, putting upward
pressure on the final pricing. The decision will be finalized late Tuesday,
though it remains subject to change.
Market Uncertainty Subsides After Tariff Shock
eToro had previously postponed its IPO after U.S.
President Donald Trump’s tariff announcements on April 2 sent markets into a
tailspin. The firm was one of several waiting for calmer conditions before
reviving public listing efforts. Now, with volatility cooling, eToro appears poised to
re-enter the market on more favorable terms.
While Robinhood Markets Inc. continues to trade at a
lofty forward price-to-sales ratio exceeding 10, eToro is being valued more
conservatively, between four and five times its first-quarter annualized sales,
according to Bloomberg Intelligence.
That valuation is based on the current price range,
which could rise if final pricing exceeds the original targets. The IPO will see shares listed on the Nasdaq Global
Select Market under the ticker ETOR.
A Second Attempt at Going Public
Founded in 2007, eToro provides a platform for users
to trade assets ranging from stocks to cryptocurrencies, often with a social
twist, users can follow or replicate the strategies of top investors. The
company had previously sought to go public via a SPAC merger at a $10.4 billion
valuation but ultimately abandoned that route.
Goldman Sachs, Jefferies, UBS, and Citigroup are
underwriting the deal. While pricing will be finalized shortly, the current
trajectory signals strong interest from institutional investors and a potential
return of appetite for fintech IPOs that had paused during recent macroeconomic
uncertainty.
Initially, eToro aimed to price its shares between $46 and $50. However, growing investor appetite could lift the final IPO price, potentially pushing the company’s valuation to between $4.4 billion and $4.8 billion, Israeli media publication Globes reported. That would exceed earlier estimates of $3.7 billion to $4.1 billion, shared just last week.
After a months-long delay caused by tariff-related
market swings, EToro is set to launch its U.S. IPO with stronger-than-expected
investor interest, potentially pricing above its marketed range, Bloomberg
reported.
The renewed momentum offers a glimpse into the
shifting sentiment around tech listings and retail trading platforms in a
post-volatility climate. The Israel-based trading and investment platform,
along with several early investors, plans to offer 10 million shares priced
between $46 and $50 each.
However, according to sources cited by Bloomberg, demand for the IPO has already exceeded supply several times over, putting upward
pressure on the final pricing. The decision will be finalized late Tuesday,
though it remains subject to change.
Market Uncertainty Subsides After Tariff Shock
eToro had previously postponed its IPO after U.S.
President Donald Trump’s tariff announcements on April 2 sent markets into a
tailspin. The firm was one of several waiting for calmer conditions before
reviving public listing efforts. Now, with volatility cooling, eToro appears poised to
re-enter the market on more favorable terms.
While Robinhood Markets Inc. continues to trade at a
lofty forward price-to-sales ratio exceeding 10, eToro is being valued more
conservatively, between four and five times its first-quarter annualized sales,
according to Bloomberg Intelligence.
That valuation is based on the current price range,
which could rise if final pricing exceeds the original targets. The IPO will see shares listed on the Nasdaq Global
Select Market under the ticker ETOR.
A Second Attempt at Going Public
Founded in 2007, eToro provides a platform for users
to trade assets ranging from stocks to cryptocurrencies, often with a social
twist, users can follow or replicate the strategies of top investors. The
company had previously sought to go public via a SPAC merger at a $10.4 billion
valuation but ultimately abandoned that route.
Goldman Sachs, Jefferies, UBS, and Citigroup are
underwriting the deal. While pricing will be finalized shortly, the current
trajectory signals strong interest from institutional investors and a potential
return of appetite for fintech IPOs that had paused during recent macroeconomic
uncertainty.
Initially, eToro aimed to price its shares between $46 and $50. However, growing investor appetite could lift the final IPO price, potentially pushing the company’s valuation to between $4.4 billion and $4.8 billion, Israeli media publication Globes reported. That would exceed earlier estimates of $3.7 billion to $4.1 billion, shared just last week.
This post is originally published on FINANCEMAGNATES.
