eToro, an Israeli-based trading and investment platform, is reportedly considering an initial public offering (IPO) in either the UK or the US. The company is also seeking a $3.5bn market valuation to attract potential investors.
eToro pondering US/UK IPO while chasing a $3.5bn valuation
Based on Reuters information, CEO Yoni Assia indicated that the company is weighing up its options to launch an IPO in New York or London. He added that a New York listing would mean exposure to a larger pool of investors.
In an interview with the Financial Times, as cited by Reuters, Assia said:
We continue to evaluate the right timing and market for a future listing.
Assia further indicated that the organisation anticipated a spike in its valuation to roughly $3.5bn as a result of its latest funding round. In 2023, eToro raised $250m from investors such as ION Group SE (IOS.DE) and SoftBank Vision Fund 2.
These IPO considerations come after eToro and a special purpose acquisition company (SPAC) funded by Betsy Cohen reached a mutual agreement to forgo their plans of a merger. Presently, the trading platform has more than 35 million customers across 100 countries.
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In August 2023, the Australian Securities and Investments Commission (ASIC) initiated legal proceedings against eToro regarding its contract for difference (CFD) products. The financial watchdog challenged the transparency and honesty of the company’s design and distribution obligations (DDO). According to reports, ASIC issued interim stop orders against products where it found that traders neglected their obligations.
