eToro – the Israeli social trading app, is on its way to an initial public via a merger with a blank-check firm led by Betsy Cohen. The agreement with FinTech Acquisition Corp. values the combined company at about $10.4B, according to a statement on Mar 16, 2021 in accordance to Bloomberg. The companies are raising about $650 million in equity to support the deal. The special purpose acquisition company raised $250 million in December.
- Detailed instructions how to participate in eToro (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
Financial Indicators before eToro IPO
eToro has developed a platform to manage investments for private investors, and during pandemic doubled its revenue to $500 million in 2020 and gained five million new customers during the year. Besides from traditional investments like stocks, ETFs, CFDs, commodities etc. eToro generates a significant portion of its revenue from cryptocurrency. One of eToro’s features is social trading, which allows investors to copy the actions of peers and expert traders and expert traders can earn a commission. Currently, eToro is the world’s leading social trading network, with more than a total of 17 million registered users from 140+ counties.
How to Buy eToro Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in eToro IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy eToro shares when the company goes public via the eToro trading app itself.
🚨 Detailed Instructions How to Participate in the eToro IPO before public trading:
Below we share the instruction how to participate in the approaching eToro IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because almost all high-profile IPOs are traded via this platform.
- Pros: most high-profile IPOs are available for participation via Freedom Finance, no eligibility requirements, no number of previous trades needed and low minimum investment amount for participating in an IPO.
- Cons: the user interface of the platform is a bit outdated.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Wait for a request to participate in the IPO — when eToro IPO date is defined you will get a notification (email and SMS text message) from Freedom Finance to apply for the IPO. Before eToro is not listed you check already listed IPOs here.
- Submit a request to participate in the IPO — when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 52%, past IPOs data.
When is the eToro IPO date
eToro's IPO date is not defined yet.
We will update when the exact Stripe date IPO is known – if you want to get notified please subscribe for updates here.
What is eToro IPO price range?
We will update when the eToro IPO offering price is known – if you want to get notified please subscribe for updates here.
How to Invest in eToro after the IPO date (opening price)?
After the IPO you can buy eToro stocks via eToro trading app itself on the first trading day.
In what currency eToro IPO and post-IPO shares will be traded?
The eToro IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Transferwise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. TransferWise never hides fees in the exchange rate.
What is the ticker (stock symbol)
Message from Yoni Assia, eToro CEO - Mar 16, 2020
I would like to update you on a momentous moment in the history of eToro.
I’m excited to share that we plan to become a publicly traded company. We have signed a business combination agreement with FinTech Acquisition Corp V. which is a special purpose acquisition vehicle (SPAC) listed on the Nasdaq exchange under the ticker symbol FTCV. The Company is expected to have an estimated implied equity value of approximately $10.4 billion at closing.
Since our founding, eToro’s vision has been to open up the global markets so that everyone can trade and invest in a simple and transparent way. We always envisioned that one day investors on eToro would be able to invest in eToro stock, and today we took a huge step towards achieving that goal.
I would like to personally thank all of our users for the role they have played in building eToro over the past 14 years.
Today, eToro is a social investment network with over 20 million registered users from more than 100 countries. Becoming a publicly traded company will support our continued expansion as a business. It will allow us to continue to scale our business, to move into new markets and to further expand our innovative product offering to meet the evolving needs of our customers. And as a public company, we will continue to focus on our mission of empowering people around the globe to become better investors by providing them with the best possible tools to make informed and responsible investment decisions.
CEO and Co-founder, eToro
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.Participate in etoro ipo
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