eToro Confidentially Files for US IPO Amid $5 Billion Valuation Speculation

eToro‘s IPO Filing Details

eToro’s confidential filing allows the company to privately clear any regulatory concerns regarding its prospectus and financial statements before making a public disclosure. According to U.S. securities regulations, this process ensures that companies can finalize compliance requirements before revealing financial details to the market.

Reports indicate that eToro has engaged Goldman Sachs as the lead underwriter, with Jefferies and UBS acting as co-managers. However, no official announcement has been made regarding which exchange eToro plans to list on. Given the companys fintech and trading focus, the most likely listing venue would be either the NASDAQ or the New York Stock Exchange (NYSE).

Interestingly, eToro recently posted an image of CEO Yoni Assia and U.S. office head Andrew McCormick standing in front of the NASDAQ market podium with the caption:

“Hey Nasdaq, nice to see you today????”

This strongly suggests that NASDAQ is eToros preferred listing venue.

eToro‘s Valuation and Market Comparison

The $5 billion figure is still higher than the $3.5 billion valuation used in eToro’s private funding round in March 2023. However, Israeli financial reports later indicated that eToros shares were traded in private markets at a valuation as low as $1.7 billion, significantly below previous funding rounds.

eToro‘s IPO timing coincides with the strong market performance of U.S. rival Robinhood (NASDAQ: HOOD), whose share price has surged more than 400% over the past year. Given Robinhood’s successful rally, eToro and its IPO managers will likely try to position Robinhood as its main market comparison, rather than other UK/European trading platforms such as Plus500 (LON:PLUS), IG Group (LON:IGG), CMC Markets (LON:CMCX), XTB (WSE:XTB), and Swissquote (SWX:SQN), which tend to trade at much lower valuations.

What‘s Next for eToro’s IPO?

IPO registration statements typically require at least 30 days for SEC clearance. However, companies often go through multiple rounds of regulatory comments, responses, and edits before final approval. If all goes smoothly, eToro could launch its IPO in Q2 2025, depending on market conditions.

As eToro progresses towards its public listing, the global financial community will closely watch how investors respond to its valuation, market position, and future growth potential. Given the current volatility in financial markets, eToros performance post-IPO could depend heavily on investor sentiment towards fintech and trading platforms.