The biggest IPO by an Israel company in recent years is being launched. Online trading platform eToro has announced the launch of the roadshow for the flotation and has applied to trade on Nasdaq under the ticker ETOR. The company will seek to raise $230-250 million ($218 million net) at $46-50 per share, giving a valuation of between $3.7 billion and $4.1 billion. Investment company BlackRock is an anchor investor in the offering and is expected to buy shares for $100 million. Goldman Sachs & Co. LLC, Jefferies, UBS Investment Bank and Citigroup are acting as lead book-running managers for the proposed offering alongside a long list of co-managers.
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eToro set for Wall Street IPO this week – report
eToro planned to hold its IPO in March but deferred the offering after President Trump’s tariff plan caused volatility on the markets. In recent days the markets have calmed and recovered most of their losses.
eToro, which was founded in 2007 by CEO Yoni Assia, Ronen Assia and David Ring, has developed a trading platform for investors in a range of assets, from stocks and indices to commodities and cryptocurrencies. The company tried to go public through a SPAC merger in 2021 at a company valuation of $10.4 billion but was forced to cancel the deal, even after cutting its valuation to $8.8 billion. eToro is now set for the biggest IPO of an Israeli company since advanced driving assistance systems (ADAS) company Mobileye Global Inc (Nasdaq: MBLY) at the end of 2022.
Nir Barkat will profit big time
One of the biggest beneficiaries from the offering will be Minister of Economy and Industry Nir Barkat. The BRM Group owned by the Barkat brothers and their partner Yuval Rechavi holds about 9% of eToro, and is expected to reduce its stake to 8.7%. BRM will receive about $20 million (in the middle of the requested price range) for its shares.
Other shareholders expected to sell shares in the offering include US venture capital fund Spark Capital, which will sell shares for about $32 million and reduce its stake in eToro to 13.9%. US investment company Andalusian SPV will sell shares for about $30 million and remain with 8.4%, while CM Equities SP will sell for about $15 million and remain with 6.3%. The Assia brothers are also expected to sell shares: Yoni Assia will sell shares worth $26 million and Ronen Assia will sell shares worth $12 million. Directors Eddy Shalev and Avner Stepak will sell shares for about $5.8 million and $409,000, respectively.
Published by Globes, Israel business news – en.globes.co.il – on May 5, 2025.
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