eToro plans to go public: valuation of 4 billion USD targeted
The trading platform eToro is preparing for an IPO. In 2021, eToro’s first attempt fell through in the final phase, now the company has advanced plans that envisage a stock exchange valuation of at least 4 billion USD.
eToro is advancing with its plans to go public and is seeking a valuation of at least 4 billion USD. The news agency Bloomberg reports on this and refers to anonymous authorities close to the matter. The process is already well advanced; the technology bank Goldman Sachs has been retained to organize a corresponding IPO in the coming months.
For eToro, a successful IPO would represent an important step on the way to expansion. When eToro made a first attempt to get onto NASDAQ in 2021, a stock exchange valuation of 8.8 billion USD was targeted at the time. eToro planned to go public via the complexity-reducing option of a SPAC. However, shortly before conclusion, the relevant agreement was overturned, which led to eToro having to adjust its strategy.
This time, the company wants to offer the shares directly to the public, which should also appeal to private investors. The exact timeline and further details of the IPO are not yet available, but experts are assuming that eToro will go public in the course of 2024.
The background to eToro’s IPO
A successful IPO would not only increase public attention for eToro, but also provide strategic capital to further position itself as a multifunctional platform for various types of assets. In recent years, eToro has increasingly shifted its business model from a social trading pioneer to the provider of classic brokerage services supplemented with crypto assets, for example.
In this sense, eToro is already moving the price peg for its IPO back then from 2021 when Bitcoin was on its way to a temporary all-time high of about 69,000 USD. Now, however, stock exchanges for cryptocurrencies and brokers are facing a completely different, less favorable market environment, requiring respectable results for the eToro IPO.
eToro was founded in 2006 in Israel and has grown to support a user base of around 30 million, according to its own information. It is not only private investors that find it easy to access eToro for stocks, cryptocurrencies, and much more, but also users who want to follow strategies of experienced traders on a network basis.
Whether the eToro IPO will be a great success in terms of valuation depends crucially on the global financial markets because interest rate movements, regulations for crypto assets and geopolitical developments all have a great deal of potential to strongly influence the ongoing eToro IPO processes.
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