Retail trading platform eToro is seeking to raise $500 million as it prepares to go public.
The company announced Monday (May 5) that it had begun the roadshow for its initial public offering (IPO). The offering will include 10 million Class A common shares, half being offered by eToro and half by an unnamed stockholder.
The shares are being offered at a price of $46 to $50 each, according to a filing with the U.S. Securities and Exchange Commission (SEC).
The filing includes possible risks to eToro’s business, including several connected to its digital asset business.
The company said that state-level cryptocurrency regulation in the U.S. could make it difficult for eToro to function in some jurisdictions.
In addition, company also expects to “continue to incur significant costs” related to the European Union rules for crypto, the Markets in Crypto-Assets Regulation (MiCA, or as eToro calls it, MiCAR).
“As MiCAR is implemented, we expect there will be further regulatory guidance issued by relevant regulatory authorities which, for the time being, presents greater regulatory uncertainty as to how MiCAR will be applied and enforced,” the company said.
eToro had reportedly filed confidential plans for an IPO with the SEC in January. However, the company is one of many that recently halted their efforts to go public after President Donald Trump’s April tariff announcements shook up the stock market.
Among the other companies were buy now, pay later (BNPL) provider Klarna, ticketing platform StubHub, FinTech company Chime, virtual physical therapy provider Hinge Health and crypto company Circle Internet Financial.
As The Wall Street Journal reported last month, companies are rethinking both deals and IPOs, with advisers recommending caution and flexibility amid a volatile market.
IPOs have been hit especially hard, as they require companies to undergo a series of tasks like public filings and marketing events in the time leading up to listing day.
“It’s week to week in terms of launch decisions,” Evan Riley, Americas head of equity capital markets at BNP Paribas SA, told the WSJ. “A lot is going to have to change for IPO activity to resume.”
eToro had planned to go public via a special purpose acquisition company (SPAC) merger, but called off that deal after the proposed merger agreement and amendment failed to meet the closing conditions in a set timeframe.
