Social trading platform eToro made a splash in the financial markets as its initial public offering priced at $52 per share, surpassing the company’s expected range of $46 to $50 and immediately rewarding early investors with a nearly 40% surge on its first trading day.
eToro’s IPO sizzled at $52 per share, exceeding projections and delivering a 40% first-day windfall to early backers.
The offering, which debuted on the Nasdaq Global Select Market under the ticker “ETOR” on May 14, 2025, saw shares opening at a remarkable $69.69 before climbing to an intraday peak of $71.5—a premium that would make even seasoned market watchers raise an eyebrow.
The IPO consisted of approximately 11.9 million Class A common shares split evenly between newly issued stock and existing shareholders’ holdings.
eToro itself raised nearly $310 million by selling almost 6 million new shares, while existing investors matched that figure with their own divestments—a balanced approach that both infused the company with fresh capital and provided early backers with a lucrative exit ramp.
At the offering price, eToro’s market capitalization stood at approximately $4.2 billion, positioning the platform as a significant player in the fintech arena.
The robust demand (evidenced by a highest bid price of $62.5 for 100 shares) suggests investors are once again warming to financial technology companies after a period of market skepticism.
Unlike competitor Robinhood which generates revenue primarily through payment for order flow and premium subscriptions, eToro has diversified its income streams across social trading features and cryptocurrency offerings.
Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup served as lead book-running managers, with an impressive roster of additional underwriters including Deutsche Bank Securities and BofA Securities providing institutional credibility to the offering.
Underwriters retained the option to purchase up to 1,788,452 additional shares, a standard provision that could further bolster the company’s capital reserves. The underwriting team was represented by Latham & Watkins with legal expertise provided by a Capital Markets team led by partners Marc Jaffe, Joshua Kiernan, and Gilad Zohari.
The successful listing comes amid renewed investor confidence in platforms that combine traditional investing with cryptocurrency trading capabilities.
eToro’s integration of AI-driven investment strategies has clearly resonated with market participants seeking technological innovation in financial services.
The offering was expected to formally close on May 15, 2025, cementing what appears to be one of the year’s more significant fintech IPOs.
The company, led by co-founder and CEO Yoni Assia, saw its stock rise nearly 29% on its first trading day, representing an upbeat sign for the IPO market.
