eToro has confirmed that it has increased the price of its initial public offering (IPO) to $52 per share, as its shares are set to begin trading publicly on Nasdaq today (Wednesday) under the ticker “ETOR”.
Raising More Money
The Israeli company has also decided to offer about 12 million shares in the public offering, up from the earlier plan of 10 million. However, half of these will be newly issued shares, while the other half will come from existing shareholders selling their stakes.
With the increased price, the fintech firm is now expected to raise nearly $310 million from the offering, valuing it at approximately $4.2 billion. Another $310 million will go the existing shareholders. In addition, if the IPO underwriters exercise their option contracts in the next 30 days, the multi-asset broker could raise an extra $93 million.
In its initial prospectus, eToro planned to price the IPO between $46 and $50 per share, placing the company’s valuation between $3.7 billion and $4 billion. The upsized pricing followed reports of strong demand for the shares: the IPO was oversubscribed tenfold, prompting the early closure of the order book.
A Robinhood Competitor
In the American stock market, eToro competes with Robinhood. Although 70 per cent of eToro’s customers are from Europe and the UK, Robinhood’s base is largely American. eToro initially made its name through contracts for difference (CFD) instruments, although it now offers a wider range of products.
The Israeli company has priced its IPO competitively against Robinhood. While it is more expensive than the three London-listed retail brokers—IG Group, Plus500, and CMC Markets—it remains cheaper than Robinhood.
Read more: eToro’s $4B IPO – Too Pricey for Europe, a Bargain in the US?
eToro ended 2024 with $931 million in total commissions and $192 million in net profit. However, the company now forecasts a lower net income for Q1 2025, between $56 million and $60 million, down from $64 million in the same period last year. It stated the drop was due to increased spending on marketing and growth.
Although the company has not disclosed exact Q1 figures, its marketing expenses for 2024 stood at $147 million, a 27 per cent rise from the previous year. That figure was lower than the $234 million spent in 2022.
Despite the lower Q1 income projection, the growth drive appears to be working. The number of funded accounts increased to 3.58 million at the end of March 2025, up from 3.13 million at the close of 2024. Net contribution also rose to between $214 million and $217 million, up from $201 million a year ago.
eToro has confirmed that it has increased the price of its initial public offering (IPO) to $52 per share, as its shares are set to begin trading publicly on Nasdaq today (Wednesday) under the ticker “ETOR”.
Raising More Money
The Israeli company has also decided to offer about 12 million shares in the public offering, up from the earlier plan of 10 million. However, half of these will be newly issued shares, while the other half will come from existing shareholders selling their stakes.
With the increased price, the fintech firm is now expected to raise nearly $310 million from the offering, valuing it at approximately $4.2 billion. Another $310 million will go the existing shareholders. In addition, if the IPO underwriters exercise their option contracts in the next 30 days, the multi-asset broker could raise an extra $93 million.
In its initial prospectus, eToro planned to price the IPO between $46 and $50 per share, placing the company’s valuation between $3.7 billion and $4 billion. The upsized pricing followed reports of strong demand for the shares: the IPO was oversubscribed tenfold, prompting the early closure of the order book.
A Robinhood Competitor
In the American stock market, eToro competes with Robinhood. Although 70 per cent of eToro’s customers are from Europe and the UK, Robinhood’s base is largely American. eToro initially made its name through contracts for difference (CFD) instruments, although it now offers a wider range of products.
The Israeli company has priced its IPO competitively against Robinhood. While it is more expensive than the three London-listed retail brokers—IG Group, Plus500, and CMC Markets—it remains cheaper than Robinhood.
Read more: eToro’s $4B IPO – Too Pricey for Europe, a Bargain in the US?
eToro ended 2024 with $931 million in total commissions and $192 million in net profit. However, the company now forecasts a lower net income for Q1 2025, between $56 million and $60 million, down from $64 million in the same period last year. It stated the drop was due to increased spending on marketing and growth.
Although the company has not disclosed exact Q1 figures, its marketing expenses for 2024 stood at $147 million, a 27 per cent rise from the previous year. That figure was lower than the $234 million spent in 2022.
Despite the lower Q1 income projection, the growth drive appears to be working. The number of funded accounts increased to 3.58 million at the end of March 2025, up from 3.13 million at the close of 2024. Net contribution also rose to between $214 million and $217 million, up from $201 million a year ago.
This post is originally published on FINANCEMAGNATES.
