eToro mulls New York listing
Make us a preferred source
Make us a preferred source on Google
The news: Retail trading platform eToro is considering pursuing an IPO in New York or London, according to a report by the Financial Times.
The numbers: The Israel-based brokerage is seeking to list at a valuation of over USD3.5 billion ($5.27 billion), the valuation it received during its last funding round of USD250 million last year. Across three million accounts, eToro manages USD11.3 billion in customer assets.
The context: In conversation with the Financial Times, founder and CEO of eToro, Yoni Assia, explained that while the company is “exploring the right timing” for a London or NY IPO, a US listing offers a broader range of investors compared to the UK market.
The UK is currently the company’s biggest market, with around 70% of eToro’s revenues coming from the EU. Listing in the US would be another blow for the London Stock Exchange, which has seen significant outflows as large listings including Flutter, TUI, and semiconductor maker ARM chose to list elsewhere.
What they said: “Retail investors in the UK and Germany want to trade US stocks. We see that UK clients might trade also UK shares, but very few of our global clients would trade UK shares. Something in the US market creates a pool of both deep liquidity and deep awareness for those assets that are trading in the US," said Assia.
The source: Financial Times
