eToro Reportedly Plans a $ 10 Billion SPAC Merger for Public Listing

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Israeli broker known for its social trading features is planning to merge with a blank check acquisition company to publicly list its shares on the Nasdaq, according to local news agency Calcalist.  

In addition, the report outlines that the trading company, which recently revealed that the total number of traders has jumped to 20 million, is seeking a listing valuation of $ 10 billion. However, etoro review UK dismissed the report and called it a rumor. “We never comment on market rumors,” said a financial spokesman for eToro Magnates. 

eToro reportedly has skyrocketed. 

Founded in 2006 by two brothers, Yoni Assia and Ronen Assia, the Israeli company has grown aggressively over the years. It ended in 2020 with $ 600 million in revenue as trading volume skyrocketed to $ 1.5 trillion. 

However, etoro review uk going public report is nothing new as before, the same publication reveals the broker’s intentions for public listing with a $ 5 billion valuation. Later, an anonymous source revealed that eToro is considering  SPAC merger to speed up the listing process. 

After media reports of etoro review UK of a possible merger with a check acquisition company went blank, another update came, creating a buzz in the market. Bloomberg recently reported that an Israeli brokerage plans to join FinTech Acquisition Corp. V, a company led by serial deal maker Betsy Cohen. 

The report outlined that the company raised about $ 650 million in equity to support the deal. If the deal is sealed, the two companies could be worth $ 10 billion. 

Although etoro review UK maintains its stance not to comment on “market rumors”, an anonymous source of the publication expects an official announcement soon. 

 

Is Cryptocurrency Replacing Fiat in the Future? 

Special Purpose Acquisition Companies or SPACs are shell companies with the sole intention of joining the operating companies, helping them to go public past the traditional and time-consuming initial public offering (IPO). SPAC has become very popular in recent years due to their demand and some have raised hundreds of millions of dollars. 

 

However, it is unclear which etoro review UK SPAC is considering the merger. 

Although etoro review the UK never confirmed the intention of the public listing, media reports have created a massive demand for its shares among private investors. Even though the broker was officially valued up to $ 800 million in its latest funding round, the private sale of at least $ 50 million worth of etoro review UK shares reportedly closed last year at a valuation of $ 2.5 billion. If eToro actually manages to earn a valuation of $ 10 billion, it will become one of Israel’s largest publicly traded fintech companies. 

The Market Already Reacted To A Possible Deal 

Cohen, a well-known businessman, was heavily involved in the recent boom in special-purpose acquisitions known by the acronym SPACs. This shell company goes public only with the intention of merging with an operating company for a certain period of time, otherwise, it has to return investors’ money. SPAC, which is reportedly considering a merger of eToro, raised $ 250 million in December. SPAC’s share price jumped 40% in aftermarket trading hours Monday following a possible deal with eToro. 

 

How Are the Tools for Brokers to Build the Best Solution Ecosystem? 

eToro has become one of the major trading platforms in Europe and other parts of the world and is often seen as a non-American alternative to Robinhood. The two business models, however, are very different. 

While Robinhood makes its money with controversial payouts for the order flow, eToro makes money from the bid-ask spread. The Israeli platform also has an extensive list of offerings and now has 20 million users worldwide. 

Founded as a social trading platform, allowing copies of expert investors’ portfolios, eToro handled $ 1.5 trillion in trading volume last year and reported revenues of $ 600 million. 

Meanwhile, private investors are reportedly trading in etoro review UK stock with a valuation of $ 2.5 billion, while the company was officially worth $ 800 million in its latest funding round.