December 28, 2020 | AtoZ Markets – The Israeli social trading platform, eToro for an initial public offering (IPO) on Nasdaq with a valuation of $5 billion. The Israeli newspaper Calcalist reported.
eToro chatting with Goldman Sachs to manage IPO
According to the publication, the social broker is negotiating with a potential listing intermediary on the American stock exchange, Goldman Sacks Bank. It is planned to conduct an initial placement of securities by the end of the second quarter of next year, 2021. EToro is also considering a merger with another company, SPAC, in order to get to Wall Street faster.
Note that a month earlier, the same local publication Calcalist published information that the social platform eToro raised $50 million in private investment with a valuation of $2.5 billion, instead of $800 million announced in 2018. Now the appraised value has also been multiplied.
Moreover, as reported, their assets were partially sold to new investors by both the owners themselves and the employees of the company. In total, since its inception, the company has raised about $200 million.
Israeli experts compare eToro's ambitions to the well-known international broker Robinhood, whose estimated value (as of August 2020) is $11 billion. Moreover, the new platform is also planning to be located on Wall Street, and, according to some experts, it can value itself as early as $20 billion.
Read also: Robinhood Hires Goldman Sachs to Lead IPO in 2021
When asked by the Calcalist newspaper, eToro replied that they were not commenting on "market rumors."
As a reminder, US-based cryptocurrency exchange Coinbase has filed an IPO with the US Securities and Exchange Commission (SEC). Experts from Messari have estimated the IPO may command a $28 billion valuation.
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