On its first day of trading on Nasdaq, renowned crypto and stock trading platform eToro observed a near-30% surge in its share price. This followed a last-minute increase to its initial public offering (IPO).
On May 14, eToro Group Ltd (ETOR) ended the trading day with shares priced at $67. This represented a 28.9% rise from its initial offering price of $52, as per Yahoo Finance data. Consequently, the company’s market capitalization now surpasses $5.5 billion.
The stock price peaked at $74.26 during the trading day, before settling down, and further declined by 0.7% after the market closed, reaching $66.53.
The day prior, eToro augmented its IPO to $620 million, pricing its shares above the formerly suggested range of between $46 to $50. Initially, eToro intended to raise $500 million by offering 10 million shares. However, the firm and its investors sold over 11.92 million shares at its IPO, with eToro and some of the existing shareholders sharing the proceeds equally.
Some funds and accounts managed by BlackRock indicated their intention to buy up to $100 million worth of shares at IPO, as per the May 5 filing eToro made with the Securities and Exchange Commission.
Meanwhile, eToro’s competitor Robinhood Markets Inc. (HOOD) saw its share price drop by 1.9% to $61.39, with losses further increasing by 1.63% after the market closed, as per Yahoo Finance.
In its regulatory filing, eToro revealed that its total 2024 crypto revenue, derived from sources like trading fees and withdrawals, stood at $12.1 billion, a significant leap from $3.4 billion in 2023. The company also expects crypto to represent 37% of its trading commission revenue in Q1 2025, down from 43% in Q1 2024.
The IPO was spearheaded by Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup.
Despite the tariff turmoil, eToro’s IPO signifies the resurgence of public offerings in the US. Many companies had postponed their public offering plans due to the market instability caused by President Donald Trump’s comprehensive tariffs.
eToro had originally planned to go public in 2021 via a merger with a special purpose acquisition company, valuing the company at $10 billion. However, due to the adverse market conditions brought about by the COVID-19 pandemic and stubborn inflation, this plan was shelved in 2022.
Crypto exchange Kraken and stablecoin issuer Circle, among others, are also considering going public this year.
