Israeli-based eToro, a leading social stock and crypto trading platform, has unveiled plans for its highly anticipated New York IPO, aiming to raise up to $500 million and achieve a valuation of $4 billion. The offering includes 10 million Class A common shares, priced between $46 and $50 per share, with half of the shares issued by eToro and the remaining five million sold by existing stockholders. according to a Monday announcement. This strategic move marks a significant milestone for the company as it seeks to expand its presence in the competitive U.S. market.
IPO Details and Underwriting Support
eToro’s IPO will also include an option for underwriters to purchase an additional 1.5 million shares within 30 days to cover over-allotments. Leading the underwriting efforts are prominent financial institutions such as Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup, with additional support from Deutsche Bank Securities, Cantor, and BofA Securities.
The company plans to list its shares on the Nasdaq Global Select Market under the ticker symbol “ETOR”. Notably, BlackRock, a $10 trillion asset management giant, has already expressed interest in acquiring $100 million worth of ETOR stock, signaling strong institutional confidence in eToro’s potential.
“A registration statement on Form F-1 relating to the proposed offering of these securities has been filed with the SEC but has not yet become effective,” stated the company on May 5. “These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.”
This filing follows eToro’s confidential IPO submission in January, allowing the company to finalize its strategy privately before going public.
Lessons from Past Attempts
The upcoming IPO represents a renewed effort for eToro after a previous attempt to go public via a Special Purpose Acquisition Company (SPAC) merger with FinTech Acquisition Corp. V in 2022 fell through. That deal, which would have valued eToro at $10.4 billion, failed to secure approval from the Securities and Exchange Commission (SEC).
The failure underscores the challenges faced by crypto-affiliated companies navigating regulatory scrutiny in the U.S. So far, only a handful of such firms, including Coinbase and several Bitcoin miners, have successfully launched IPOs in the country. Stablecoin issuer Circle also recently filed a prospectus with the SEC in late April, though updates on its plans remain pending amid shifting market conditions.
Broader Implications for the Crypto Industry
eToro’s IPO could serve as a litmus test for other crypto-related companies considering public listings. However, recent geopolitical developments, such as President Trump’s tariff policies, have prompted some firms to reconsider their timing.
If successful, eToro’s flotation could pave the way for greater institutional adoption of crypto platforms while solidifying its position as a key player in the evolving digital asset ecosystem. For now, all eyes are on the SEC’s approval and how the market responds to this landmark offering.
