Israel-based retail trading platform eToro reported a more than three-fold surge in revenue for 2024 as it filed for a U.S. initial public offering (IPO) late on Monday. The company’s move comes as part of a wave of firms seeking to capitalize on the rebounding IPO market, which is expected to revive in 2025 after a period of sluggish activity.
With easing interest rates and a renewed appetite for risk, market optimism is on the rise, and analysts suggest the success of high-profile listings will be critical to sustaining this rebound. “Management and owners are clearly seeing a ‘window of opportunity’ to take their companies public now,” said Josef Schuster, CEO of IPO-focused investment index IPOX.
Retail trading saw a significant surge in 2024, driven by record-high equity markets, reduced recession fears, strong corporate earnings, and expectations of Federal Reserve rate cuts. This environment spurred renewed enthusiasm for both stocks and cryptocurrencies, with online brokerages reporting sharp increases in trading volumes. Speculative bets and options trading gained traction as individual investors re-entered the market.
Founded in 2007, eToro operates a platform that allows users to trade stocks, cryptocurrencies, and other assets while mirroring the strategies of top investors. The company’s revenue jumped to $12.64 billion for the year ending December 31, compared to $3.89 billion the previous year. Profit also saw a significant increase, rising to $192.4 million from $15.3 million in 2023.
“The IPO will provide the company with the flexibility to expand beyond crypto and capture the generational opportunities arising from the rise of the retail investor globally,” Schuster added.
Previously, eToro had scrapped plans for a public listing in 2022 after a merger deal with Betsy Cohen-backed FinTech Acquisition was mutually terminated. However, after a successful $250 million funding round in March 2023, which valued the company at $3.5 billion, eToro is now poised to list on Nasdaq under the ticker symbol “ETOR.”
Goldman Sachs, Jefferies, UBS, and Citigroup are acting as the lead underwriters for the offering.