Retail trading platform Etoro targets a $4 billion valuation at US IPOs

Aras Kannagi Basil and Atef Bandari

(Reuters) – Israeli Etro said Monday it is targeting a valuation of up to $4 billion in the US initial public offering as retail trading platforms move forward with the much-anticipated New York buoyancy.

Bnei Brak-based Etoro and some existing shareholders are seeking up to $500 million by offering 10 million shares, priced at $46 to $50 each.

The stock market has regained some calm over the last few days amid signs of ease trade tensions and opening windows for businesses to open public.

Etoro’s list on the tech-heavy NASDAQ is a litmus test of investors’ desire for stock sales for the first time in the aftermath of a tariff-driven chaos.

The company had delayed its IPO’s investor presentation last month due to market conditions, Reuters reported.

“Early in the IPO revival cycle, investors are often looking for significant discounts,” said Jeff Zell, senior research analyst at IPO Boutique.

“If Etro can properly tell the growth story in a highly competitive market, they can achieve successful results.”

Etoro’s trading platform, founded in 2007, allows users to invest in stocks and cryptocurrencies.

In September, the company agreed to limit US encryption offerings to Bitcoin, Bitcoin Cash and Ether.

Etoro previously was about to make public through a merger with a special purpose acquisition company backed by Betsy Cohen, at a $10.4 billion valuation. These plans collapsed in 2022.

In 2023, Etro raised $250 million in a funding round at a valuation of $3.5 billion.

Asset Manager BlackRock shows it offers up to $100 million worth of stock.

Goldman Sachs, Jeffreys, UBS and Citigroup are the major underwriters. The company is listed under the symbol “ETOR” in Nasdaq.

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