eToro’s IPO Plans

Social stock and crypto trading platform eToro has confidentially filed with the Securities and Exchange Commission (SEC) for an initial public offering in the United States, as reported by the Financial Times, citing familiar sources.

The company may list in New York as early as the second quarter of this year, aiming for a valuation exceeding $5 billion. They are collaborating with banks such as Goldman Sachs, Jefferies, and UBS on these plans.

A confidential filing with the U.S. regulator is a standard method for companies aiming to go public, allowing them to finalize flotation plans discreetly.

eToro initially planned to go public through a Special Purpose Acquisition Company (SPAC) merger in March 2021 with FinTech Acquisition Corp. V, at a valuation of $10.4 billion. However, those plans were shelved due to the 2022 bear market after failing to receive SEC approval. Following a $250 million funding round announced in March 2023, eToro’s valuation fell to $3.5 billion, with participation from ION Group, SoftBank, and Velvet Sea Ventures.

eToro declined to comment when contacted by The Block.

Limited Crypto Firm IPOs

Besides Bitcoin miners, Coinbase is one of the few crypto firms to have gone public in the U.S., making its direct listing debut on the Nasdaq in April 2021 under the ticker symbol COIN. The digital asset platform Bakkt also went public on the NYSE via a SPAC merger in October 2021, reportedly being courted for acquisition by Trump Media and Technology Group, the parent of Donald Trump’s Truth Social.

Circle, the issuer of the USDC stablecoin, also filed confidentially for an IPO of its equity securities in January 2024, pending SEC review. Similar to eToro, Circle’s earlier SPAC merger agreement with Concord Acquisition Corp. also fell apart.

In September, eToro agreed to pay $1.5 million to settle SEC charges for operating unlawfully as a broker and clearing agency regarding its crypto business, without admitting or denying the findings. The company also agreed to cease support for certain tokens in the U.S.