Shares of eToro, a stock brokerage platform, made a strong debut on the Nasdaq exchange, soaring 34% above its IPO price. The company raised nearly $310 million in its initial public offering, with shares closing up almost 29% at $67 each. This brought eToro’s total market capitalization to over $5.4 billion.
Investors are eyeing eToro as a sign of renewed interest in IPOs, following a dry spell caused by tariff concerns. CEO Yoni Assia noted that the company decided to go public after seeing signs of market stability, particularly in the CBOE Volatility Index.
Notably, eToro had previously planned to go public through a merger with a special purpose acquisition company in 2021, but postponed those plans due to market conditions. The company’s net income surged last year, driven by trading-related fees and non-trading activities such as withdrawals.
One key aspect of eToro’s business is its growing presence in the cryptocurrency market. Revenue from crypto assets more than tripled in 2024, with a significant portion of the company’s net trading contribution coming from crypto. Despite this growth, eToro expects a slight decrease in crypto assets’ share of commission from trading activities in the first quarter of this year.
Spark Capital and BRM Group are among eToro’s major investors, with CEO Yoni Assia also holding a significant stake in the company. With a successful IPO under its belt, eToro is poised to continue its growth trajectory in the financial markets.
In other news, fintech company Chime and digital physical therapy company Hinge Health are also making moves towards going public, indicating a potential resurgence in IPO activity. Overall, eToro’s IPO success reflects a positive outlook for the company and the broader market.