eToro Reportedly Plans SPAC Merger for $10 Billion Public Listing

Israeli broker, eToro, which made its name with the social trading feature, is planning for a merger with a blank-check acquisition company to publicly list its shares on Nasdaq, according to local news agency, Calcalist.

In addition, the report outlined that the trading company, which recently revealed that the total number of traders jumped to 20 million, is looking for a listing valuation of $10 billion.

However, eToro dismissed the report, calling it a rumour. “We never comment on market rumours,” an eToro spokesperson told Finance Magnates.

eToro Skyrockets

Established in 2006 by two brothers, Yoni Assia and Ronen Assia, the Israeli company grew aggressively over the years. It ended the year 2020 with a revenue of $600 million as the trading volumes skyrocketed to $1.5 trillion.

However, the reports of eToro going public is not new as earlier, the same publication revealed the broker’s intentions for public listing with a $5 billion valuation. Then, the anonymous sources revealed that eToro is considering a SPAC merger to expedite the listing process.

Special Purpose Acquisition Companies or SPACs are shell companies with only the intention to merge with operating companies, helping them to go public bypassing the traditional and time-consuming initial public offering (IPO). SPACs became very popular in recent years due to their demand and some are even raising hundreds of millions of dollars.

However, it is not clear with which SPAC eToro is considering a merger.

Though eToro never confirmed any intentions of a public listing, the media reports have created a massive demand for its shares among private investors. Though the broker was officially valued at $800 million in its last Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term, a private sale of at least $50 million worth of eToro shares was reportedly sealed last year at a valuation of $2.5 billion.

If eToro truly manages to gain a valuation of $10 billion, it will become one of the largest publicly-traded Israeli Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term companies.