eToro's Nasdaq Debut: Stock Price Surges to $67, Up 29% from IPO

# eToro Surges 28.9% on NASDAQ Debut, Marking a Strong Start Global trading platform eToro (ticker: ETOR), known for its services in equities and digital assets, made a stunning NASDAQ debut, with its stock skyrocketing 28.9% on its first trading day. The company's revised IPO pricing strategy substantially expanded the scope of the offering. On October 14, eToro’s shares closed at $67, significantly outperforming the initial IPO price of $52. This valuation places its market capitalization at approximately $5.5 billion. During the trading session, the stock peaked at an intraday high of $74.26 before settling at $67. # Strategic IPO Adjustments Boost Capital Raised On October 13, eToro increased its IPO price to $52 per share, above the original guidance range of $46 to $50. This adjustment boosted the offering size to $620 million, up from the initially targeted $500 million. Originally planning to issue 10 million shares, the company eventually sold a total of 11.92 million shares, with 5.96 million contributed by eToro and the rest by existing shareholders. eToro also disclosed in filings with the U.S. Securities and Exchange Commission (SEC) that funds and accounts managed by BlackRock expressed interest in purchasing up to $100 million worth of IPO shares. # Earnings and Projections: Mixed Signals in Digital Asset Revenue According to regulatory filings, eToro reported significant growth in revenue from digital asset trading fees and withdrawals, hitting $12.1 billion in 2024, up from $3.4 billion in 2023. However, the company projects a decrease in the proportion of digital asset revenues relative to total trading fees. By the first quarter of 2025, digital asset-related revenues are expected to comprise 37%, down from 43% in the first quarter of 2024. # Major Underwriters Anchor eToro IPO Success The IPO was backed by a consortium of leading financial institutions, including Goldman Sachs, Jefferies, UBS Investment Bank, and Citigroup, highlighting strong institutional support for eToro's listing. # IPO Buzz in the Digital Asset Arena eToro’s debut occurs amid growing anticipation of other digital asset-focused companies preparing to go public. Major cryptocurrency exchange Kraken and stablecoin issuer Circle are rumored to be considering IPOs. Additionally, blockchain analytics firm Chainalysis, along with Anchorage Digital and Figure, are seen as potential IPO candidates in 2024. This successful debut by eToro boosts investor confidence in digital asset-centric firms, fueling momentum for a potential surge of similar IPOs in the capital markets.