Omar Marquez | SOPA Images | Lightrocket | Getty Images
The stock on the stock brokerage platform appeared on the NASDAQ debut on Wednesday after the company raised almost $310 million in its first public offering.
The stock opened at $69.69, or 34% above the IPO, boosting its market capitalization to $5.6 billion. Stocks rose more than 40%.
The Israel-based company sold nearly 6 million shares, over the expected range of $46-$50, for $52 each. Approximately 6 million additional shares have been sold by existing investors. At the price of the IPO, the company was valued at around $4.2 billion.
Wall Street is turning its eyes to Robinhood’s competitors in search of signs of new interest in the IPO after the drought has been extended. Many investors saw President Donald Trump’s return to the White House as a catalyst before tariff concerns could delay plans.
Etro is not just a company trying to test water. Fintech Company Chime filed a prospectus with the U.S. Securities and Exchange Commission on Tuesday, saying that digital physiotherapy company Hinge Health has kickstarted the IPO Roadshow and is aiming to provide up to $437 million in filings.
Etoro previously filed that it was made public in 2021 through a special purpose acquisition company (a merger with SPAC). We shelved these plans in 2022 as the stock market is nose-shaped, but focused on the final IPO.
Etro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. The company makes money through non-trading activities such as transaction-related fees and withdrawals. Net income rose almost 13 times last year from $15.3 million in 2023.
The company is steadily building a growing business with cryptocurrency. Revenue from crypto assets more than tripled to $12 million in 2024, resulting in a quarter of the net transaction contributions derived from Crypto last year. That’s up from 10% in 2023.
Etoro said in the first quarter, Crypto Assets expects 37% of the committee to account for 37% from trading activities.
Spark Capital is the company’s largest outside investor, with 14% control after offering and a BRM Group of 8.7%. CEO Yoni Assia manages 9.3%.
