According to an article in Israeli technology news website Ctech, the social trading and multi-asset brokerage eToro is planning an initial public offering (IPO) in the 2nd quarter of 2021 following remarkable growth in 2020 with doubling of revenue and the addition of 5 million new customers.
The technology news site reports that eToro is looking to Goldman Sachs to be the primary bank leading the offering. Founded in 2007 by two brothers, Ronen and Yoni Assia, the company has grown into an international social trading and brokerage powerhouse with registered customers estimated at 17 million. The company is reported to have booked revenue of $500 million during the difficult pandemic year and has experienced a sharp rise in the number of new customers.
The company has noticeably expanded its workforce in the last year as well, with plans to add more headcount strategically in 2021. Some analysts are comparing eToro to Robinhood, the popular US equities broker – which has some 15 million users and also has seen the doubling of certain key performance indicators during 2020.
If the brokerage does list on an exchange, it would join a long list of successful Israeli firms which have already done so or are also planning to list on US equities exchanges. At the same time, representatives of eToro signalled that the news is just a ‘rumor’ having commented to Finance Magnates, that “eToro does not comment on market rumors.”
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