Investor interest for eToro’s long-awaited IPO has
surged beyond expectations, reportedly prompting the fintech firm to shut its
order books earlier than planned.
According to Calcalist, the offering, led by Goldman
Sachs and Jefferies, is reportedly more than ten times oversubscribed. Backed
by explosive demand and renewed enthusiasm for crypto platforms, eToro now
stands to raise over $500 million at a valuation exceeding $4 billion.
According to sources familiar with the matter, the
underwriters have informed roadshow participants that no further orders will be
accepted beyond Monday. The flood of investor interest may now be expected to prompt a boost in the IPO pricing, adding further upside to the company’s capital raise.
Missed Window, Now Seizing the Moment
eToro initially aimed to go public in 2021 but shelved
those plans amid regulatory uncertainty surrounding digital assets. That landscape shifted in 2024, as Donald Trump’s return to the White House caused renewed hope in the crypto and fintech sectors.
With regulatory sentiment easing and market confidence
returning, eToro seized the window it once missed.
Founded in Israel, eToro operates a trading platform for stocks, ETFs, and cryptocurrencies. The company’s recent financial results reflect a major turnaround, largely driven by a rebound in crypto
trading volumes.
“The principal purposes of this offering are to increase our
capitalisation and financial flexibility, and to create a public market,” the
company stated. “We intend to use the net proceeds from this offering for
general corporate purposes, including working capital, operating expenses, and
capital spending.”
Strong Financial Performance
After reporting a net loss of $21 million in 2022, the
company swung to a $192 million profit in 2024. Earnings per share followed
suit, rising from a loss of $11.45 in 2022 to $0.80 in 2023, and then to $9.85
in 2024.
The trading boom in digital assets played a key role
in eToro’s financial rebound. Revenue jumped from $639 million in 2023 to $931
million in 2024, while EBITDA nearly tripled from $117 million to $304 million
over the same period.
You may also like: eToro Uses AI-Powered Ads with Google’s Veo 2 as It Prepares $4B IPO Offering
While eToro’s numbers look strong, the company is forecasting
a lower income income due to growing marketing expenses. As reported by
financemagnates, the company foresee a lower Q1 net income of between $56
million and $60 million compared to the same quarter last year, when it earned
$64 million.
According to the Israeli fintech giant, the expected drop in
net income is due to higher marketing investment, which was partly offset by
a fall in share-based payment expenses.
The firm also expects lower adjusted EBITDA. In the first
quarter of last year, the company posted $87 million for the first three months
of 2024. However, from January to March 2025, this figure is expected to drop between
$76 million and $80 million.
Investor interest for eToro’s long-awaited IPO has
surged beyond expectations, reportedly prompting the fintech firm to shut its
order books earlier than planned.
According to Calcalist, the offering, led by Goldman
Sachs and Jefferies, is reportedly more than ten times oversubscribed. Backed
by explosive demand and renewed enthusiasm for crypto platforms, eToro now
stands to raise over $500 million at a valuation exceeding $4 billion.
According to sources familiar with the matter, the
underwriters have informed roadshow participants that no further orders will be
accepted beyond Monday. The flood of investor interest may now be expected to prompt a boost in the IPO pricing, adding further upside to the company’s capital raise.
Missed Window, Now Seizing the Moment
eToro initially aimed to go public in 2021 but shelved
those plans amid regulatory uncertainty surrounding digital assets. That landscape shifted in 2024, as Donald Trump’s return to the White House caused renewed hope in the crypto and fintech sectors.
With regulatory sentiment easing and market confidence
returning, eToro seized the window it once missed.
Founded in Israel, eToro operates a trading platform for stocks, ETFs, and cryptocurrencies. The company’s recent financial results reflect a major turnaround, largely driven by a rebound in crypto
trading volumes.
“The principal purposes of this offering are to increase our
capitalisation and financial flexibility, and to create a public market,” the
company stated. “We intend to use the net proceeds from this offering for
general corporate purposes, including working capital, operating expenses, and
capital spending.”
Strong Financial Performance
After reporting a net loss of $21 million in 2022, the
company swung to a $192 million profit in 2024. Earnings per share followed
suit, rising from a loss of $11.45 in 2022 to $0.80 in 2023, and then to $9.85
in 2024.
The trading boom in digital assets played a key role
in eToro’s financial rebound. Revenue jumped from $639 million in 2023 to $931
million in 2024, while EBITDA nearly tripled from $117 million to $304 million
over the same period.
You may also like: eToro Uses AI-Powered Ads with Google’s Veo 2 as It Prepares $4B IPO Offering
While eToro’s numbers look strong, the company is forecasting
a lower income income due to growing marketing expenses. As reported by
financemagnates, the company foresee a lower Q1 net income of between $56
million and $60 million compared to the same quarter last year, when it earned
$64 million.
According to the Israeli fintech giant, the expected drop in
net income is due to higher marketing investment, which was partly offset by
a fall in share-based payment expenses.
The firm also expects lower adjusted EBITDA. In the first
quarter of last year, the company posted $87 million for the first three months
of 2024. However, from January to March 2025, this figure is expected to drop between
$76 million and $80 million.
This post is originally published on FINANCEMAGNATES.
