eToro Prepares for IPO: Valuation of 5 Billion US Dollars Hoped For
The social trading platform eToro is set to go public. A merger with a SPAC should ensure that the stock market values eToro at 5 billion US dollars. eToro was originally expected to complete its IPO in mid-2022, but market conditions and the collapse of the SPAC market delayed the IPO.
The planned IPO should primarily be aimed at scaling opportunities, particularly in the North American market. eToro CEO Yoni Assia said that the IPO will offer a chance to forge ahead with the worldwide extension of the platform. It remains to be seen how investors will react to the stock market plans.
Founded in 2007, eToro has significantly contributed to the growing popularity of social trading. This allows individual investors to follow and replicate the trades of more experienced traders.
eToro claimed to have more than 30 million registered users at the end of the first half of 2022. The IPO will be watched closely by the competition, which includes companies like Robinhood and Binance.
eToro’s cash position is said to be about 250 million US dollars, slightly better than expected due to meticulous financial guidance. Nevertheless, expansion is high on the agenda, and fresh funds from the IPO would provide the needed financial backing.
The anticipation of the IPO by eToro believers, who are first in line due to future buy-ins, is a hopeful fantasy. However, it remains to be seen how the long-term aspects of the stock market can make eToro part of a long-term growth strategy.
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