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 11.92 million shares offered in the IPO, 5.96 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 $52 a share, Assia could make as much as $28.6 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 $13.2 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 $21.8 million, while their voting power is slated to drop to 8.71%. Andalusian could make $32 million from selling 618,999 shares, while its voting power is expected to fall to 8.44%.
