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Shares of stock brokerage platform eToro popped in their Nasdaq debut on Wednesday after the company raised almost $310 million in its IPO.
The stock opened at $69.69, or 34% above its initial offering price, pushing its market cap to $5.6 billion at the open. Shares were last up more than 40%.
The Israel-based company sold nearly 6 million shares at $52 each, above the expected range of $46 to $50. Almost 6 million additional shares were sold by existing investors. At the IPO price, the company was valued at roughly $4.2 billion.
Wall Street is looking to the Robinhood competitor for signs of renewed interest in IPOs after an extended drought. Many investors saw President Donald Trump’s return to the White House as a catalyst before tariff concerns led companies to delay their plans.
Etoro isn’t the only company attempting to test the waters. Fintech company Chime filed its prospectus with the SEC on Tuesday, while digital physical therapy company Hinge Health kickstarted IPO roadshow, and said in a filing it aims to raise up to $437 million in its impending offering. CoreWeave tested demand with its IPO in March.
EToro had previously filed to go public in 2021 through a merger with a special purpose acquisition company (SPAC) that would have valued it at more than $10 billion. It shelved those plans in 2022 as equity markets nosedived, but remained focused on an eventual IPO.
“We definitely are eyeing the public markets,” CEO Yoni Assia told CNBC in 2023, adding that the company is “evaluating the right opportunity.”
EToro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. The company makes money through trading-related fees and non-trading activities such as withdrawals. Net income increased almost thirteenfold last year to $192.4 million from $15.3 million in 2023.
The company has steadily built a growing reputation in cryptocurrencies. Revenues from cryptoassets more than tripled to over $12 million in 2024 and one-quarter of its net trading contribution stemmed from crypto last year,. That’s up from 10% in 2023.
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