Etoro shares jump 29% after its IPO in the US - is it a buy for UK investors?
Shares in investment platform Etoro opened up 34 per cent on Wednesday as it debuted on Nasdaq at midday in New York, raising over $300million.
The stock settled at $67 per share at the end of trading, up 29 per cent from its Initial Public Offering value of $52, but lower than the $69.69 it opened at.
Etoro shares peaked at $74.23 each, up 43 per cent form its IPO price. At the time of writing, shares in the firm are trading at $62.91, having slipped some 6.1 per cent on Thursday.
Israel-based Etoro had upsized its IPO value to $52 from an expected range of between $46 and $50 apiece.
The result of the IPO gives the firm a market value of around $5.4billion. The firm said it had expected to raise around $217million in its IPO.
Etoro offers trading of both shares and cryptocurrencies, with the latter making the firm $12.15billion in revenue in 2024, quadrupling year on year.
Last year the firm posted profit of $192million, rising from just $15million a year ago.
Writing on the company's website, its co-founder and chief executive Yoni Assia said: 'As a platform built to provide access to the capital markets, becoming part of those markets as a listed company was a natural next step.
'Today, that ambition became a reality, but it is only the beginning.
'We will continue to push the boundaries of what's possible and to build a platform that not only meets the needs of today's investors, but also anticipates the opportunities and challenges of tomorrow.'
Assia told CNBC: 'We felt that we're seeing the light at the end of the tunnel of the correction in the markets.'
Back in 2022, the firm filed for an IPO, before scrapping the plans as equity markets saw a downturn.
The firm was founded by brothers Yoni and Ronen Assia and David Ring in 2007.
It has a popular Copy Trader feature that allows users to replicate strategies of experienced investors and 'smart portfolios' which it says offer diversified, analyst-curated investment options aligned with specific market themes.
The Nasdaq debut, however, comes despite market turmoil caused by Donald Trump's tariffs, which has seen the likes of Klarna and Stada choosing to put their own offerings on hold.
The firm cited the Israel-Hamas conflict as a potential business risk in its IPO filing.
Etoro said: 'As a company headquartered in Israel, there is heightened risk of cyberattacks on our and our supply chain's IT networks in general, and more so as a result of the war.
'Although the current war has not materially impacted our business or operations as of the date of this prospectus, the continuation of the war and any escalation or expansion of the war could have a negative impact on both global and regional conditions.'
Etoro shares are traded under the Nasdaq ticker 'ETOR'.
Can you buy Etoro shares on the Etoro platform?
Often, to buy US shares on a UK platform, you'll need a premium account to access them and to fill out a W-8BEN form, which declares your foreign status.
Etoro shares can be purchased on the Etoro UK platform without a premium membership - although, you'll need to fill out the W-8BEN form.
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