Israel-based stock brokerage platform eToro Group Ltd made a striking debut on the Nasdaq overnight, with its shares surging as much as 42% above the initial public offering (IPO) price after the upsized deal raised almost US$620 million.
The Robinhood competitor’s strong market entry reflects renewed investor optimism as the IPO market beings to experience a broader rebound, driven by easing US-China trade tensions and the recent Wall Street rally. Investors will now watch to see if the strong response reignites other listing plans put on pause after US President Donald Trump’s April tariffs announcement roiled markets.
Upsized to meet demand
Under the symbol ETOR, the stock opened at US$69.69 – 34% above its IPO price – and closed up nearly 29% at $67, with shares peaking at US$74.28. The trading put eToro’s total market capitalisation at around US$5.4 billion, up from US$4.2 billion at IPO.
The IPO was upsized due to strong investor demand, with eToro selling about 6 million shares and exiting shareholders selling another 6 million, each raising about $310 million.
“As a platform built to provide access to the capital markets, becoming part of those markets as a listed company was a natural next step,” eToro CEO and co-founder Yoni Assia said.
Retail investors, crypto drive growth
The offering, led by major financial institutions including Goldman Sachs, Jefferies, UBS and Citigroup, marks one of the most significant fintech IPOs in recent years.
Robert Francis, managing director of eToro Australia, called the listing a major milestone and said eToro was “thrilled” to become a public company.
“Our journey to IPO reflects the extraordinary growth in our global community of retail investors, many of whom are here in Australia,” Francis said.
“It’s a clear sign that retail investing is not a fad, but a long-term trend shifting how ordinary people build wealth,” he added. “More importantly, it reflects the trust that users and investors place in us to put the power of investing in more hands, by giving users better tools, resources and local products like superannuation in Australia.”
Financially, eToro reported substantial growth in 2024, with net income soaring to $192.4 million from $15.26 million in 2023 and revenues increasing to $12.64 billion from $3.43 billion. A significant portion of the growth was driven by a surge in cryptocurrency trading, which accounted for 38% of the company’s commissions in 2024, more than doubling from the previous year.
Green shoots in IPOs
Founded in 2007 by Assia and his brother, the company has grown to serve more than 40 million users across 75 countries.
The successful IPO follows a previously abandoned attempt in 2021 to go public through a special purpose acquisition company (SPAC) deal valued over $10 billion.
In the context of a recovering IPO landscape, eToro’s performance may serve as a bellwether for other fintech companies considering public offerings, with firms like Chime also planning IPOs as the market shows appetite for new listings.