eToro Resumes IPO Roadshow, Targets $4 Billion Valuation

After pausing its plans last month, online trading platform eToro has officially launched its initial public offering (IPO) roadshow, according to an updated F-1 filing with the SEC and a press release issued by the company. The move sets the stage for one of the most closely watched tech IPOs of the year.

The Israeli fintech company plans to offer 10 million shares at a price range of $46 to $50, targeting a raise of up to $500 million. eToro will evenly split the offering between newly issued shares and existing shares sold by key early investors and company insiders.

Selling shareholders include prominent backers such as Spark Capital, BRM Group (the investment firm of the Barkat family), Andalusian, CM Equities, and company executives, including CEO Yoni Assia and his brother Ronen Assia. Director Eddy Shalev will also be among those selling shares.

If the IPO is priced at the top of the range, eToro stands to raise $250 million in fresh capital. The remaining $250 million will go to selling shareholders.

eToro Resumes IPO Roadshow, Targets $4 Billion Valuation

The IPO is being led by a consortium of investment banks, with Goldman Sachs, Jefferies, UBS, and Citi taking the lead. Jefferies’ participation is especially notable, as it owns eToro competitor FXCM.

After the offering, eToro will have approximately 80.87 million shares outstanding, implying a post-deal valuation between $3.7 billion and $4.0 billion. The pre-IPO valuation is pegged at $3.5 to $3.8 billion.

eToro structured its shares into 44.39 million Class A shares, including 5 million newly issued, and 36.48 million Class B shares.

While the company has not finalized its Q1 2025 results, it released preliminary estimates as part of its updated prospectus. Funded accounts rose to approximately 3.58 million as of March 31, up from 3.48 million at the end of 2024.

However, assets under administration declined 11%, falling from $16.6 billion at the end of 2024 to an estimated $14.8 billion. This metric includes all user assets and cash held in funded accounts.

eToro expects Q1 EBITDA to come in between $76 million and $80 million, in line with its quarterly average in 2024, when it reported $304 million in full-year EBITDA. Net income for Q1 is expected to range between $56 million and $60 million, slightly down from $60.4 million in Q4 2024.

With the IPO roadshow now underway, eToro will begin pitching its offering to institutional investors over the coming days, potentially pricing its IPO as early as next week.

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