Israeli trading platform eToro has officially filed for a U.S. initial public offering, following a strong financial performance in 2024 that saw its total commissions rise by 46% to $931 million.
The move marks a renewed effort to go public after its 2022 SPAC merger plan was scrapped. This time, eToro is aiming to list on the Nasdaq under the ticker “ETOR”, with Goldman Sachs, Jefferies, UBS, and Citigroup as lead underwriters.
The company reported a dramatic increase in profitability, posting $192.4 million in net income, up from just $15.3 million a year earlier. The gains were driven by a resurgence in retail trading, as global markets reached record highs and investor sentiment improved.
Founded in 2007, eToro allows users to invest in a range of assets including stocks, cryptocurrencies, and ETFs, with a social trading feature that lets users follow and copy top-performing investors.
Retail investor activity surged in 2024, fueled by optimism around potential Federal Reserve rate cuts, easing recession fears, and strong corporate earnings. Online brokers have seen a notable rise in trading volumes, particularly in speculative assets and options.
Industry experts believe the IPO market is poised for a comeback in 2025 after years of muted activity. “There’s a clear window of opportunity now,” said Josef Schuster, CEO of IPO-focused firm IPOX. He added that eToro’s listing could help the platform expand its global footprint and diversify beyond crypto.
eToro last raised $250 million in March 2023, valuing the company at $3.5 billion. Its decision to go public aligns with a broader trend of high-growth firms returning to public markets, hoping to ride the wave of investor optimism and strong equity performance.
The success of eToro’s IPO could serve as a key indicator for other private companies weighing public listings in the near future.
