eToro IPO 10x oversubscribed; Expected to raise over $500M at $4B+ valuation
Underwriters eye pricing boost amid soaring investor demand.
eToro is closing its IPO order books on Monday due to exceptionally high demand, Calcalist has learned.
The underwriters of the IPO, led by Goldman Sachs and Jefferies, notified participants in the Israeli fintech company's roadshow that they will no longer be accepting new orders. The offering is estimated to be more than ten times oversubscribed.
In light of the strong demand, the underwriters are expected to raise the IPO price, enabling eToro to raise more than $500 million at a valuation of over $4 billion, which was outlined in its original prospectus.
The fintech unicorn, which operates a digital trading platform for securities and cryptocurrencies, missed the IPO window in 2021 due to regulatory concerns surrounding digital assets. It renewed its public offering efforts earlier this year, following Donald Trump's return to the White House, which brought renewed momentum to the sector.
eToro reported a net profit of $192 million in 2024—a sharp increase compared to just $15.3 million in 2023 and a loss of $21 million in 2022. In terms of earnings per share, the company recorded a loss of $11.45 in 2022, turned profitable with $0.80 per share in 2023, and saw the figure rise to $9.85 per share in 2024.
According to the prospectus, eToro's revenue (total fees collected) reached $639 million in 2023 and $931 million in 2024. One of the key drivers behind the company's strong results was the surge in crypto trading. The company's EBITDA rose to $304 million in 2024, up from $117 million in 2023.
