eToro, a cryptocurrency trading platform, is preparing to conduct an initial public offering (IPO) in the United States with a valuation of $5 billion. The organization has elected to withdraw from the United Kingdom market.
eToro, the retail trading platform that was established in 2007, is now officially pursuing the major divisions. The Financial Times reported on January 17 that the company has submitted confidential documents to the US Securities and Exchange Commission (SEC) in anticipation of an initial public offering (IPO) in New York.
According to the report, they are aiming for a valuation of $5 billion, which could occur as early as the second quarter of this year.
Despite the fact that the United Kingdom is eToro’s largest market, the company is abandoning London, a market that CEO Yoni Assia believes is no longer conducive to the company’s global objectives. In his own words:
“Only a small number of our global consumers would engage in the trading of UK shares. Something in the US market generates an archive of both deep liquidity and deep awareness for assets that are traded in the US.”
The business tried to join with a special purpose acquisition company (SPAC) for $10.4 billion in 2021, but the deal fell through in 2022. At the time, Assia provided an explanation for her decision, stating, “The markets are not present.”
By that time, the SPAC surge, which had promised rapid and effortless access to public markets, had already collapsed. SoftBank and Ion Group led a $250 million funding round for the company in 2023.
$3.5 billion was the valuation of the corporation during that round. With the support of Goldman Sachs, Jefferies, and UBS, eToro is now expanding its operations to Wall Street.
When a company determines that it is time to go public, the process of an IPO commences. This decision is typically based on the necessity of raising funds for expansion or providing early stakeholders with a means to convert their equity into tangible dollars. Following the confirmation of that decision, the subsequent phase involves the recruitment of underwriters, including Goldman Sachs and other institutions.
These banks will determine the company’s value, regulate the share price, and guide the stock’s introduction to the market. Subsequently, there is an examination of the organization’s financial statements. The Securities and Exchange Commission (SEC) receives a registration document, which is typically an S-1 form, that contains all relevant information, including balance sheets, operations, and risks.
