eToro Eyes US Stock Exchange Listing to Expand Existence
Even though the UK is its main revenue generator, eToro has shifted its focus with plans to list in the United States. With aspirations to reach a valuation exceeding $3.5 billion, the company seeks to capitalize on the enormous opportunities presented by the American market.
In the latest update from forex broker news, forex broker eToro is considering making an offer initial public offering (IPO) in the US, although most of its business comes from the UK and Europe, which account for nearly 70% of its revenue.
Yoni Assia, CEO of this multi-asset broker, highlighted the appeal of the US stock market, especially among UK and German retail investors who likes US stocks. Despite its strong presence in Europe, eToro may choose to IPO on the London exchange to serve its European market base.
The move is in line with broader trends in Europe, where companies are eyeing bigger valuations and more capital in the US market. Recent examples include Aspen, Marex, and Flutter, which have gone public on the New York Stock Exchange or moved from the London Stock Exchange.
Assia is eyeing a market debut at a $3.5 billion valuation, matching the figure set in its last funding round. However, it remains uncertain whether forex broker eToro will allow its clients to participate in IPO investments similar to platforms such as Robinhood and Reddit.
Reflecting on the failed SPAC merger that valued eToro at $ 10 billion, Assia see it as a valuable lesson. Despite the setback, eToro secured a $250 million investment in March 2023, valuing the company at $3.5 billion, with backing from ION Group, SoftBank Vision Fund 2, and other prominent investors .