An eToro spokeswoman declined to comment citing the IPO’s quiet period.
eToro’s listing comes at a pivotal time for the IPO market, which has been largely been dormant since 2021 when a record 397 companies went public. But that “Class of 2021” has largely performed badly in the broad market with only 17.4% trading above their IPO offer prices, according to Renaissance Capital, a provider of pre-IPO research and IPO-focused ETFs.
“A successful eToro IPO would go a long way, but we’ll need to see several more in order for a meaningful pickup this summer,” Kennedy said.
Founded in 2007, eToro offers a platform for customers to trade assets, including crypto, similar to U.S.-based trading platform Robinhood.
eToro is profitable, reporting $192.38 million in net income for the year ended Dec. 31, up from $15.25 million in 2023. On a quarterly basis, the company posted $59.1 million in profit for the quarter ended Dec. 31, compared to $16 million in profit the same time period in 2023.
Total revenue jumped to $12.6 billion in 2024 from $3.89 billion in 2023.
Of the 10 million shares offered in the IPO, 5 million are coming from eToro itself while the rest will come from existing shareholders. This includes Yoni Assia, eToro’s CEO and co-founder, who is offloading 549,635 Class A shares and will see his voting power drop to 9.34% after the offering. At $50 a share, Assia could make as much as $27.5 million from the sale. Ronen Assia, Yoni’s brother and an eToro co-founder, is selling 254,901 shares, which means he could make as much as $12.7 million while his voting power will drop to 3.42% after the IPO.
BRM Group, a venture firm from Tel Aviv, Israel, and Andalusian SPV, the investment firm from Jeffrey Kaplan, are also offering shares. (Kaplan is the ex-COO of hedge fund Appaloosa Management.) BRM is selling 419,518 Class A shares, which means they could reap nearly $21 million, while their voting power is slated to drop to 8.71%. Andalusian could make nearly $31 million from selling 618,999 shares, while its voting power is expected to fall to 8.44%.
