Israel-based retail trading firm eToro is making headlines as it reportedly shifts its focus from the London Stock Exchange to pursue a US initial public offering (IPO). The Financial Times has revealed that eToro has confidentially filed with the U.S. Securities and Exchange Commission (SEC), despite the fact that its largest market is currently in the United Kingdom.
Confidential filings provide companies with the opportunity to progress with their plans without disclosing them to the public until they are prepared to do so. According to sources, eToro is aiming for a $5 billion valuation and could potentially debut on the New York markets as early as the second quarter of this year.
In a statement last year, eToro’s CEO and founder Yoni Assia explained the decision to pursue a listing in the US, stating that it could offer the company access to a broader range of investors. Assia noted, “Very few of our global clients would trade UK shares. Something in the US market creates a pool of both deep liquidity and deep awareness for those assets that are trading in the US.”
eToro initially attempted to go public in 2021 through a $10.4 billion deal with a Special Purpose Acquisition Company (SPAC), but ultimately scrapped the plans following the decline of SPACs. In 2023, eToro received a valuation of $3.5 billion after securing $250 million in funding from investors like SoftBank and Ion Group.
As eToro continues to navigate its path towards an IPO in the US, the company’s strategic shift reflects its ambitions for growth and expansion in the global market. Keep an eye on eToro’s journey as it prepares to make its mark on the New York markets in the coming months.
Stay updated on the latest developments in the financial world by subscribing to our email alerts. Don’t miss out on important market movements and trends – subscribe now! Follow us on Twitter, Facebook, and Telegram for real-time updates and analysis. Join The Daily Hodl community to stay informed and connected with fellow investors.
Image Credit: Midjourney
This article was written by a contributor and does not necessarily reflect the views or opinions of The Daily Hodl.