eToro, an Israel-based fintech company, is reportedly preparing to go public in the United States, aiming for a valuation exceeding $5 billion. The trading platform, known for allowing users to trade assets such as stocks, ETFs, and crypto, has filed confidentially with the U.S. Securities and Exchange Commission (SEC). This move comes after the Financial Times reported the filing, suggesting eToro could list in New York as early as the second quarter.
Founded in 2007, eToro has established itself as a competitive player in the financial technology sector, rivaling companies like Robinhood. The firm initially planned to go public via a special purpose acquisition company (SPAC) in 2021, with a valuation of $10.4 billion. However, eToro scrapped these plans in 2022, opting for a different strategic path.
In March 2023, eToro secured a significant financial boost by raising $250 million in funding, resulting in a valuation of $3.5 billion. This capital injection has positioned the company favorably as it approaches its potential public offering. According to sources cited by the Financial Times, eToro's decision to file for a U.S. IPO closely follows digital bank Chime's confidential SEC filing in December.
The confidential nature of eToro's filing suggests that the company is taking careful steps toward its public market debut. By doing so, eToro aims to leverage its strong market position and innovative platform to attract investors and expand its reach.
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