In a new report gathered earlier this week, Israeli social trading and multi-asset brokerage company focused on providing financial and copy trading services. eToro, is reportedly in talks with leading global investment banking, securities, and investment management firm, Goldman Sachs, to introduce an Initial Public Offering(IPO) valued at $5 billion.
However, the report gathered from the rumors suggest that the IPO might likely be completed towards the tail end of the second quarter of 2021. Additionally, the company is presentlyly looking into merging with another company to complete its plans.
eToro successful year boost their chances
The asset brokerage firm has reportedly doubled its revenue from last year by grossing about half a billion this year alone. The success witnessed this year also includes the addition of five million new customers to its portfolio. The year’s success was capped for the company when an institutional investor purchased $50 million worth of eToro shares at a 2.5 billion valuation from a secondary market.
The company will only look to build on the success of 2020 with the IPO set for 2021. It is important to note that the IPO report is still speculative as the Israeli company has not yet released an officiall announcement to this effect. An anonymous staff of eToro, when quizzed about the development, said that the firm neither confirm nor deny it.
eToro successes cannot elude cryptocurrency
The company is famous for trading investments like stocks, ETFs, CFDs, forex, and precious metals. However, it also generates huge revenue from cryptocurrency. Most of the generated revenue from cryptocurrencies are from the United States, where it began operations in 2018.
The firm qualifies as a regulated crypto trading provider with enhanced security and compliance features and currently offers its U.S. customers access to 15 of the market’s most popular cryptocurrencies. The firm’s rumored IPO is exciting news for the crypto industry due to its earlier focus on the asset class and given that Bitcoin is trading near an all-time high price.
eToro leads others in social trading
While it is important to stress that eToro’s successes in the cryptocurrency space cannot be underestimated, it is important to note that one of eToro’s defining features is social trading, which allows investors to copy the actions of peers and expert traders. The company is currently on top of the world in terms of social trading has its network boast of about 17 million registered users from over 140 countries.