eToro, a popular online trading platform known for its crypto-friendly approach, is reportedly aiming for a US initial public offering (IPO) instead of listing on the London Stock Exchange.
Targeting a Big Valuation
According to sources, the Israeli company has confidentially filed paperwork with the US Securities and Exchange Commission (SEC). They’re hoping for a $5 billion valuation and a potential listing as early as the second quarter of this year. This move, according to CEO Yoni Assia, would give them access to a larger and more aware investor pool compared to the UK market.
Past Attempts and Recent Funding
eToro previously attempted an IPO in 2021 through a SPAC merger, but those plans were scrapped. However, the company recently secured $250 million in funding, boosting its valuation to $3.5 billion. Investors included SoftBank and Ion Group.
Why the US?
Assia explained that the US market offers significantly greater liquidity and investor awareness, making it a more attractive option than the UK for eToro. The company’s largest market is actually the UK, but the potential for broader investor reach in the US is a key driver for this decision.
