eToro Hires Goldman Sachs for U.S. IPO Plans

eToro is reportedly advancing with plans to go public and hires Goldman Sachs and other investment banks to assist with its potential initial public offering (IPO) in the United States. Sources familiar with the matter have suggested that eToro is eyeing a listing on either the New York Stock Exchange (NYSE) or NASDAQ, with a target date for the IPO as early as the second quarter of 2025. 

While the timing is still tentative, the company is focusing on the U.S. market for its public debut after previously considering both New York and London as possible listing locations. As for its valuation, eToro has indicated that it plans to seek a figure above the $3.5 billion valuation it received in a private funding round in March 2023. However, reports have also surfaced suggesting that eToro shares were changing hands in the private market at a much lower valuation of $1.7 billion, less than half its earlier estimate. 

This significant drop highlights the volatility that has affected the eToro market position, particularly amid the shifting conditions of the crypto and online trading sectors. The company had previously attempted to go public in 2021 through a merger with Fintech Acquisition Corp V, a unique purpose acquisition company (SPAC). 

eToro Hires Goldman Sachs for U.S. IPO Plans

The merger deal, initially valued at around $10 billion, faced several delays and the parties eventually renegotiated it to a lower range of $8-9 billion. eToro called off the IPO in 2022, reflecting the challenges it faced as its fortunes were closely tied to the rise of retail trading, especially in cryptocurrencies.

With Bitcoin recently surpassing the $100,000 mark, eToro has seen a surge in trading volumes, positioning the company to potentially capitalize on a favorato capitalize on the favorable market environment for its IPO. Robinhood, Plus500, and XTB, which have recently hit multi-year stock price highs, could further motivate eToro to press ahead with its listing. 

The company has also sought strides in expanding its U.S. presence, launching nationwide services for retail traders to access fractional stocks, ETFs, and options. However, eToro’s Arm has faced regulatory scrutiny, including a $1.5 million settlement with the SEC over crypto trading practices. As eToro prepares for its public debut, all eyes will be on the timing and valuation of its IPO, with the company looking to capitalize on the growing popularity of retail trading and the cryptocurrency market.

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