According to the Financial Times, the Israeli online trading platform eTor0 has secretly submitted an application to the US Securities and Exchange Commission (SEC) for an initial public offering (IPO) on Wall Street, with a target valuation of $5 billion. Previously, Globes reported that the IPO plan would be completed in the second quarter of 2025, led by Goldman Sachs, Jefferies, and UBS.
Although 75% of eTor0's revenue comes from Europe, choosing to go public in New York is seen as a strategic move to expand its investor base. The company currently has 1700 employees, including 1000 in Israel.
Second attempt to go public
This will be eToro's second attempt to go public. Three years ago, eTor0 planned to go public on NASDAQ through a SPAC merger, with a valuation of over $10 billion at the time. However, due to deteriorating market conditions and regulatory challenges in the cryptocurrency sector, this merger was not successful.
In September 2024, eTor0 once again faces regulatory challenges as the US Securities and Exchange Commission requires it to restrict its digital currency business. The company paid a fine of $1.5 million as a result, and its cryptocurrency trading in the United States was restricted to only support three cryptocurrencies: Bitcoin, Bitcoin Cash, and Ethereum.
Financial Performance and Challenges
EToro was founded by brothers Yoni and Ronen Assia in 2007, providing a trading platform covering various assets such as commodities, stocks, indices, and cryptocurrencies. In recent years, the company has reported different financial performance.
In 2023, eTor0 achieved a net profit of $107 million, a significant improvement from the loss of $40 million in 2022. However, its revenue in 2023 is $630 million, which is the same as in 2022 and only half of the $1.2 billion revenue in 2021. Last year, eToro completed a round of financing with a valuation of $3.5 billion, far below the $5 billion valuation target for this IPO.
This IPO is an important moment for eToro, marking a crucial step for the company to consolidate its position in the global financial market and overcome past challenges.
