In a renewed effort to go public, eToro is contemplating a valuation exceeding $3.5 billion, according to CEO Yoni Assia in an interview with the Financial Times. This move follows a previous unsuccessful attempt when eToro pursued a $10.4 billion deal with a blank check company, resulting in a substantial valuation reduction.

While eToro primarily operates in the United Kingdom, the consideration of a public listing in the United States is to the market’s deep liquidity. However, London remains a potential option for the brokerage’s public listing. Assia stated, “Retail investors in the UK and Germany want to trade US stocks,” emphasizing the appeal of the deep liquidity and awareness associated with assets trading in the US market.

Headquartered in Israel, eToro has successfully expanded its reach into European markets, with 70 percent of its revenue generated from the continent. Founded in 2007, eToro initially gained recognition in the copy-trading space but has since diversified its offerings to include stocks and cryptocurrencies.

eToro Valuation Exceeding $3.5 billion, Eyeing Deep Liquidity

With approximately 3 million accounts and managing around $11.3 billion in customer assets, eToro had initially revealed its intention to go public in 2021 through a deal with Betsy Cohen’s Special Purpose Acquisition Company. However, the deal fell through in July 2022, leading eToro to raise $250 million from investors, including SoftBank and Ion Group, at a $3.5 billion valuation.

Assia’s renewed plan to take the company public is driven by favorable market conditions. Drawing inspiration from Robinhood’s successful listing in 2021 during the tech frenzy, Assia acknowledges the differences in priorities between the two companies. Unlike Robinhood, eToro’s customer base is primarily European, UK, and Asian. Assia highlighted, “To give access to US IPOs in European markets is a very different infrastructure.”

As eToro navigates the complexities of international markets and investor sentiment, the brokerage aims to capitalize on the present market conditions to achieve a successful public listing.

Also, stay updated with the Latest Broker News.