FNG Exclusive… FNG has learned from sources in Israel that social trading focused online broker eToro is getting set to announce a going-public transaction, that will value the company at approximately $10 billion. eToro will apparently eschew the traditional IPO process, and go public via a combination with one or more SPACs.
The company is reportedly finalizing negotiations on terms of the transaction with an existing US-listed SPAC, although that entity has yet to be identified. eToro’s deal is reportedly set to move forward within the next two weeks.
With an increased focus on social/copy trading and crypto investing, eToro added more than 5 million users in 2020 and recently put out a short video (see below) touting that it has crossed the 20 million user mark. From a valuation perspective, that would make each user worth $500 within a $10B market cap for the company, not out-of-line with valuation metrics of other publicly traded Retail FX brokers.
The last objective valuation for eToro, which has raised more than $160 million over the course of its life, came late last year when company shares changed hands in the secondary private market which valued eToro at $2.5 billion. A $10 billion public offering would see a 4x increase in eToro’s valuation in less than four months. If completed as planned, the deal would also instantaneously make eToro the largest publicly traded Retail FX broker by valuation, at more than two times IG’s market cap of $4.3 billion.
Ronen and Yoni Assia