EToro Group experienced a significant surge in its stock price, rising as much as 42% during its initial trading session as a public company. The trading and investment platform, along with some of its backers, successfully raised approximately $620 million in an upsized IPO. Shares of the Israel-based firm traded above the initial public offering price of $52, reaching a peak of $74.28 and settling around $67.50 as of Wednesday afternoon in New York.
The successful IPO gives EToro a market capitalization of nearly $6 billion, with a fully diluted value close to $7 billion when including employee stock options and restricted share units. The offering involved the sale of 11.92 million shares by the company and a group of its investors, exceeding the initially planned 10 million shares and priced above the marketed range of $46 to $50 each. The offering was heavily oversubscribed, drawing demand exceeding 20 times the available shares. Funds managed by BlackRock had indicated interest in purchasing up to $100 million worth of EToro shares at the IPO price.
Founded in 2007, EToro offers a platform that allows users to trade and follow top investors in various assets, including stocks and cryptocurrencies. The company previously attempted to go public through a blank-check company merger at a $10.4 billion valuation. The IPO was led by Goldman Sachs Group, Jefferies Financial Group, UBS Group, and Citigroup. EToro shares are now trading on the Nasdaq Global Select Market under the ticker symbol ETOR. The company reported a net contribution of $787 million in 2024, with net income of $192 million, a significant increase from the prior year’s net contribution of $557 million and net income of $15.3 million.
