eToro IPO 10x Oversubscribed as Crypto Rebound Attracts Investors
Investor interest for eToro’s long-awaited Initial Public Offering (IPO) has surged beyond expectations, reportedly prompting the fintech firm to shut its order books earlier than planned. The offering, led by prominent financial institutions, has reportedly been more than ten times oversubscribed. Backed by explosive demand and renewed enthusiasm for crypto platforms, eToro now stands to raise over $500 million at a valuation exceeding $4 billion.
The underwriters have informed roadshow participants that no further orders will be accepted beyond the designated date, underlining the overwhelming investor interest. This flood of interest may now be expected to prompt a boost in the IPO pricing, adding further upside to the company’s capital raise.
Originally, eToro aimed to go public in 2021 but had shelved those plans amid regulatory uncertainty surrounding digital assets. A shift in the regulatory landscape in 2024 brought renewed hope, especially with more favorable government policies towards crypto and fintech. With regulatory sentiment easing and market confidence returning, eToro seized the window it once missed.
Founded in Israel, eToro operates a trading platform offering stocks, Exchange-Traded Funds (ETFs), and cryptocurrencies. The company’s recent financial results reflect a significant turnaround, largely driven by a rebound in crypto trading volumes. This strategic pivot allowed eToro to transition from challenging times to a profitable stance.
After reporting a net loss of $21 million in 2022, the company experienced a remarkable recovery, posting a $192 million profit in 2024. Earnings per share also mirrored this positive trend, rising from a loss of $11.45 in 2022 to $0.80 in 2023, and then to a substantial $9.85 in 2024.
The trading boom in digital assets was a key driver in eToro’s financial rebound. Revenue surged from $639 million in 2023 to $931 million in 2024, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) nearly tripled from $117 million to $304 million over the same period. This robust financial performance underscores eToro’s strategic adaptability and highlights the burgeoning investor interest in the fintech and crypto sectors.
