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SummaryCompanieseToro, shareholders seek as much as $500 millionTrading platform earlier tried going public through SPAC dealBlackRock set to buy up to $100 million of shares in IPO
May 5 (Reuters) - Israel's eToro said on Monday it was targeting a valuation of up to $4 billion in its U.S. initial public offering, as the retail trading platform moves ahead with its long-awaited New York flotation.
Bnei Brak-based eToro and some existing stockholders are seeking up to $500 million by offering 10 million shares priced between $46 and $50 each.
Stock markets have regained some poise in recent days amid signs of easing trade tensions, opening the window for companies to go public.
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eToro's listing on the tech-heavy Nasdaq will be a litmus test of investor appetite for first-time share sales in the aftermath of the tariff-driven turmoil.
The company had delayed investor presentations for its IPO last month due to market conditions, Reuters reported.
"Given how early we are in the IPO revival cycle, investors are often looking for large discounts," said Jeff Zell, senior research analyst at IPO Boutique.
"If eToro is able to properly tell its growth story in a highly competitive market, they will be able to achieve a successful outcome."
Founded in 2007, eToro's trading platform allows users to invest in stocks and some cryptocurrencies.
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The company had agreed in September to limit its U.S. crypto offerings to bitcoin, bitcoin cash and ether as part of a settlement with the Securities and Exchange Commission on charges it operated as an unregistered broker and unregistered clearing agency.
eToro had earlier looked to go public through a merger with Betsy Cohen-backed special purpose acquisition company at a $10.4 billion valuation. Those plans fell apart in 2022.
In 2023, eToro raised $250 million in a funding round at a valuation of $3.5 billion.
Asset manager BlackRock (BLK.N), opens new tab has indicated on buying up to $100 million worth of shares in the offering.
Goldman Sachs, Jefferies, UBS and Citigroup are the lead underwriters. The company will list on the Nasdaq under the symbol "ETOR".
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Reporting by Arasu Kannagi Basil and Ateev Bhandari in Bengaluru; Editing by Krishna Chandra Eluri
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Arasu Kannagi BasilThomson ReutersBasil writes stories across the U.S. finance file including banks, asset managers, payment firms, insurers, and exchange operators. He also covers initial public offerings on U.S. exchanges and venture capital funding.
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