eToro IPO raises $620M after pricing shares above range at $52

eToro, a crypto and stock trading platform, successfully completed its initial public offering (IPO), raising $620 million by selling over 11.92 million shares at $52 each. This exceeded their initial target of $500 million and the projected price range of $46-$50. The shares, trading under the ticker symbol ETOR on the Nasdaq Global Select Market, began trading on May 14th, with the offering remaining open until at least May 15th. The offering comprised shares sold by eToro itself and existing shareholders.

This IPO positions eToro as a competitor to Robinhood Markets Inc. (HOOD), which saw its shares increase by over 67% year-to-date, closing May 13th at approximately $62 per share. eToro’s confidential SEC filings for the IPO began in January, with a public announcement following in March.

Further activity in the financial technology sector includes Chime, a digital banking fintech firm, applying to list on the Nasdaq under the symbol CHY. While specifics regarding share count and price range are yet to be determined, Renaissance Capital estimates the IPO could raise up to $1 billion.

The crypto industry also shows significant IPO activity. Kraken, a cryptocurrency exchange, is reportedly considering an IPO this year. Circle, a stablecoin issuer, initially filed with the SEC in April but paused its plans due to market instability. BitGo, a crypto custody services firm, launched an over-the-counter trading desk in February and is also reportedly preparing for an IPO.

Bitwise, a crypto ETF issuer, predicted in December 2022 that at least five crypto unicorns would go public by 2025, including Circle, Kraken, Figure, Anchorage Digital, and Chainalysis. Coinbase’s 2021 Nasdaq listing marked a significant precedent for major crypto firms entering the public market. The trend suggests a growing convergence between the traditional financial system and the cryptocurrency industry, exemplified by the increasing number of crypto companies pursuing public listings.