eToro Puts a Price Tag of over $3.5 Billion to Potential IPO

eToro, the Israeli brokerage, is considering an initial public offering (IPO) with a valuation of more than $3.5 billion. This comes after their previous attempt at going public fell through, resulting in a significant valuation cut. While eToro primarily operates in the United Kingdom, they are now considering listing in the United States due to the deep liquidity in the market. However, they have not ruled out London as a potential market for their IPO. CEO Yoni Assia stated that retail investors in the UK and Germany are more interested in trading US stocks, and the US market offers a pool of deep liquidity and awareness for those assets. Unlike their previous failed attempt, eToro is now looking at an IPO, although no details have been revealed yet. The brokerage has successfully expanded into the European markets and generates 70% of its revenue from the continent. With about 3 million accounts and $11.3 billion in customer assets, eToro raised $250 million from investors after their failed merger attempt. CEO Yoni Assia’s plan to take the company public is driven by the current market conditions, following the example of Robinhood, although their customer base and infrastructure differ.