eToro is apparently all set to launch its initial public offering with a $5 billion valuation in collaboration with Goldman Sachs.
The company is a leading social trading and brokerage services provider that draws it significant revenue from digital assets, and cryptocurrencies are reportedly going public.
eToro to Go Public
As per the report published in the Israeli news portal Calcalist, eToro is involving with Goldman Sachs to bring out an IPO by the mid of 2021. The company is also looking through to merge with a special purpose acquisition company so that it can steadfast its entry into Wall Street trading. The company has garnered more than 5 million new customers this year. Currently valued at $5billion the offering would be led by Goldman Sachs.
Calcalist reported that eToro is amongst the leading Israeli tech companies trying to break into the United States IPO. Leading firms like RFF, ORCAM, Monday.com and Iron source are also striving to debut in the US markets with an IPO. eToro would also accomplish a SPAC merger to enter Wall Street. The social trading platform helps investors and manages investments for private investors. During the Coronavirus pandemic, there has been a substantial increase in the digital assets trading, which skyrocketed the value of eToro.
To match its growth, eToro is on a recruitment spree and hires hundreds of people in the last year. The Israel based company has around 700 employees in Israel and about 400 across the world. The firm plans to hire more employees next year. Venture capitalists like China Minsheng Financial, Ping An Insurance and Chemi Peres are some of the leading investors in eToro which raised $200 million. .
eToro revenue doubled in 2020 as it gained a whopping number of new customers. US-based institutional investor bought $50 million worth shares from a secondary market. The IPO is yet not confirmed as the company has not commented on the report as of now.
eToro provides ETFs, forex and metal commodity trading along with cryptocurrency trading. It entered the US in 2018 as it qualifies as a regulated crypto trading platform in the US and provides trading services for 15 significant cryptocurrencies to the US clients.
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