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Stock and crypto trading platform eToro had a good start on Nasdaq as its share price jumped by almost 30% on its first day of trading. eToro ETOR closed at $67 on May 14, up from its IPO price of $52, to give it a valuation of over $5.5 billion. The stock hit a high of $74.26 before settling and dipping slightly to $66.54 in after-hours trading. Just a day before going public, eToro raised its IPO target to $620 million, pricing its shares higher than expected at $52 each.
The company initially aimed to raise $500 million by selling 10 million shares but ended up selling nearly 11.92 million shares, split between eToro and existing shareholders. According to a May 5 SEC filing, funds managed by BlackRock showed interest in buying up to $100 million worth of shares. Robert Francis, eToro Australia’s managing director, said the IPO highlights how retail investing is here to stay and not just a passing trend.
In contrast, eToro’s rival Robinhood (HOOD) saw its stock fall by 1.9% to $61.39, dropping further after hours. eToro reported $12.1 billion in crypto revenue for 2024, a sharp rise from $3.4 billion in 2023. However, it expects crypto’s share of total trading commission to dip from 43% in Q1 2024 to 37% in Q1 2025. The IPO was led by Goldman Sachs, Jefferies, UBS, and Citigroup, and marks a comeback for IPOs after delays due to Trump’s recent tariff moves.
