Shares of eToro, the Israel-based retail trading firm, have skyrocketed following its successful debut on the Nasdaq Exchange. The company’s new ETOR shares have surged more than 30% on their first day of trading, currently priced at $67.66.
eToro managed to raise an impressive $620 million through an upsized initial public offering (IPO) of 11,923,018 Class A common shares, priced at $52.00. Half of the shares were sold by the company itself, while the other half were sold by large shareholders. Originally expected to be priced between $46.00 and $50.00 per share, the IPO exceeded expectations.
Founded in 2007, eToro had previously attempted to go public in 2021 through a $10.4 billion deal with a Special Purpose Acquisition Company (SPAC). However, the plans were scrapped following the collapse of the SPAC market. Earlier attempts for an IPO this year were delayed due to the implementation of tariffs by President Donald Trump in April.
eToro’s platform is known for its crypto-friendly features, which have attracted regulatory scrutiny in the past. In September, the company agreed to pay $1.5 million in penalties to the U.S. Securities and Exchange Commission (SEC) for operating as an unregistered crypto broker and clearing agency since 2020. As a result, eToro limited its digital asset trading options to Bitcoin (BTC), Bitcoin Cash (BCH), and Ethereum (ETH).
As eToro continues to make waves in the trading world, investors are keeping a close eye on its performance and potential for growth. The company’s successful IPO and strong market debut have positioned it as a formidable competitor to platforms like Robinhood.
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(Image credit: Midjourney)