Stock trading platform eToro experiences boost following its initial public offering on the New York Stock Exchange, as a result of increased shares sold.
eToro Riding the Wave of Increased Market Optimism in US IPO Market
Hooray! Shares in retail trading platform eToro soared on its Wall Street debut, driven by a surge of optimism as trade tensions between China and the US cooled and confidence returned to the IPO market.
eToro shot up as much as 42.8% to an impressive $74.28 on Wednesday following an initial public offering on the Nasdaq that valued the Israel-based company just under $6B. The upward trend began after an upsized float, where 11.9 million shares were sold to investors at $52 a piece, raising almost $620 million.
The company, founded in 2007 and with the UK as its largest market, had initially anticipated selling 10 million shares for between $46 and $50. eToro's listing received a boost from BlackRock, which acted as a cornerstone investor with an expressed interest in purchasing up to $100 million of shares in the offering.
This surge in the US IPO market comes as a breath of fresh air, following a sluggish start to the year. Bankers had high expectations for a quick recovery for large new offerings during the early stage of Donald Trump's second term as president. However, market volatility triggered by his sweeping tariff announcements in early April sent stocks tumbling and led to postponed tech IPOs.
Among the casualties were Swedish "buy now, pay later" group Klarna and ticket company StubHub. Waves of volatility that followed subsequent changes to Trump's initial levy plans buffeted global financial markets throughout much of that month.
However, US stocks have made a stellar comeback over the past few weeks. The recent deal struck between the US and China to scale back their trade war added fuel to a rally that has erased the S&P 500's losses for the year. In sync with this market revival, shares in eToro's main competitor, Robinhood Markets, have gained almost 40% over the past month.
eToro's big day came just after mobile banking group Chime filed for a US IPO, disclosing net income of $12.9 million on revenue of $518.7 million for the first three months of 2025. Other signs of market thawing emerged when San Francisco-based product design software group Figma filed for an IPO in mid-April.
Aspen Insurance priced a nearly $400 million IPO last week, with shares gaining almost 17% since. American Integrity Insurance Group priced a $110 million IPO last Wednesday, posting a 7.4% increase.
In all, Goldman Sachs, Jefferies, UBS, and Citigroup acted as lead book-running managers for eToro's offering.
The euphoria surrounding eToro's listing underscores the current resurgence of investor optimism and a strong recovery trend in the US IPO market. As trade tensions ease and market sentiments shift, the number and size of IPOs are expected to rise significantly compared to the previous year. This recovery is fueled by renewed confidence, successful IPO performances, and strategic interest in high-growth sectors like fintech and crypto. The US IPO market is well-positioned for continued growth in the near future.
- The banking giant BlackRock showed interest in purchasing up to $100 million of shares in eToro, a move that might be indicative of growing investor optimism in the banking sector.
- With eToro's successful IPO and the surge in its main competitor, Robinhood Markets, the technology-driven financial sector seems to be on an upward trajectory, with fintech and crypto emerging as high-growth sectors.
- As trade tensions ease and market volatility decreases, the US IPO market is expected to witness a significant rise in the number and size of IPOs, propelled by renewed confidence and the success of recent IPO performances.
