EToro ahead of strong US stock market debut – Demand significantly exceeds supply

eToro's IPO exceeds price range, supported by high demand from institutional investors and market revitalization after tariff pause.

5/14/2025, 5:55 PM
Eulerpool News May 14, 2025, 5:55 PM

EToro is on the verge of a successful stock market debut in the USA: The fintech company is expected to place its shares above the targeted price range of $46 to $50 each. The offering is oversubscribed multiple times, according to people familiar with the matter. The final pricing is expected on Tuesday evening.

The high demand marks a trend reversal after weeks of caution in the IPO market, triggered by the recent tariff announcements by the US government. EToro had initially postponed its plans but is now among the first companies to resume its stock market activities.

A total of 10 million shares are being offered – both by the company itself and by existing investors. BlackRock has expressed interest, according to the prospectus, in investing up to 100 million USD in the offering.

EToro was founded in 2007 and operates a trading platform where users can invest in stocks and cryptocurrencies, as well as copy the strategies of experienced investors. A previous IPO via a SPAC merger at a valuation of 10.4 billion US dollars had failed.

Compared to the competition, the valuation appears moderate. While Robinhood is currently trading with a forward price-to-sales multiple of over 10, eToro would be between four and five times the annualized Q1 revenue, according to Bloomberg Intelligence, depending on the final price.

The consortium leadership of the IPO is with Goldman Sachs, Jefferies, UBS, and Citigroup. The papers are to be listed under the ticker ETOR on the Nasdaq Global Select Market.

The step to go public is likely to bring eToro not only capital but also attention – exactly at the right time, as interest in retail trading is picking up again after months of uncertainty.

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