eToro’s IPO debut was a smashing success, with shares soaring 29% on their first day of Nasdaq trading. Starting at $52, the stock hit $74.28 before settling at $67, valuing the social trading platform at $4.2 billion. The company crushed skeptics by raising $310 million and reporting massive growth – revenue jumped to $12.6 billion with profits up 1,155%. Not bad for the first major fintech IPO in four years. There’s more to this comeback story.
While market skeptics predicted doom for fintech IPOs, eToro proved them dead wrong.
The social trading platform’s shares exploded nearly 29% on their first day of Nasdaq trading, closing at $67 after starting well above the already ambitious $52 IPO price.
eToro’s stellar market debut shattered expectations, with shares soaring 29% to $67 on day one of Nasdaq trading.
Not too shabby for a company that couldn’t even go public through a SPAC deal two years ago.
The numbers tell quite a story.
eToro raked in a cool $310 million by selling roughly 6 million shares, while existing shareholders cashed out another 6 million.
Total IPO valuation? A whopping $4.2 billion.
The stock hit peaks as high as $74.28 during the day, making those early naysayers look pretty foolish.
The strong performance came as major stock indexes showed mixed results during the session.
With a May 15 closing date, investors won’t have to wait long to see if the momentum continues.
The company sailed through the electronic dealer market system that defines Nasdaq’s trading mechanisms.
Let’s talk about timing – because wow, did eToro nail it.
While competitors like Robinhood and Circle sat on the sidelines wringing their hands over market conditions, eToro charged ahead.
They became the first major fintech IPO in about four years, and they crushed it.
Bitcoin trading around $103,400 probably didn’t hurt either.
The company’s financials certainly helped sell the story.
We’re talking $12.6 billion in revenue for 2024, up from $3.89 billion the previous year.
And that profit jump? From $15.3 million to $192 million – a staggering 1,155% increase.
Those aren’t rookie numbers.
Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup led the charge as book-running managers, giving the IPO some serious Wall Street credibility.
The offering structure was clean and straightforward: equal parts new shares and existing shareholder sales, with underwriters getting a 30-day option for extra shares.
For anyone keeping score, this marks a dramatic turnaround from eToro’s failed SPAC attempt in 2021-2022.
The message is clear: traditional IPOs aren’t dead – they just needed the right company at the right time with the right numbers.
And eToro, apparently, was all three.
