Trading Platform eToro Exploring Potential US IPO With Goldman Sachs: Bloomberg
According to the latest Bloomberg Trading platform EToro is reportedly working with Goldman Sachs on a possible initial public offering in the United States, the report said.
The trading and investment platform plans to go public in the second quarter at a valuation that could be higher than the $3.5 billion it raised in a private round last year, though the timeline could change. However, details such as the timing of the issuance could change and more banks could be added, people familiar with the matter said.
Founded in 2007, eToro provides a platform that allows users to trade and follow top investors in assets such as stocks and cryptocurrencies. It has more than 38 million registered users from 75 countries.
eToro’s listing may be a response to rising enthusiasm for crypto-assets on its platform after U.S. President-elect Donald Trump selected a crypto-friendly businessman to replace the outgoing SEC chairman. Many believe the appointment could lead to more opportunities for cryptocurrencies, including the possibility of new cryptocurrency-related initial public offerings (IPOs) and other financial products. Affected by this, the price of Bitcoin has soared, even breaking through the $100,000 mark for the first time.
Notably, the company’s U.S. subsidiary EToro USA LLC agreed in September to pay $1.5 million and restrict U.S. users’ access to cryptocurrencies on its platform to settle charges that it operated as an unregistered broker and clearing house . The platform signed the cease-and-desist order without admitting or denying the allegations.
Last year, the company completed $250 million in financing, valuing the company at $3.5 billion. Its investors include ION Group, SoftBank Vision Fund II and Velvet Sea Ventures.
EToro had previously attempted to go public at a $10.4 billion valuation through a merger with a special purpose acquisition company led by serial dealmaker Betsy Cohen. However, both parties agreed to terminate the deal in 2022.
