Trading platform Etoro Group (ETOR US) rides the bull in an explosive debut.
The company priced 11.9mm shares (upsized from 10.0mm) at $52.00 and opened at $69.69 for a gain of 34.0% at first trade. The $52.00 price was $2.00 above the original $46-$50 range.
eToro Group hit a first day high of $74.28 or 42.8% above the issue price before selling off the rest of its opening session. The stock closed its first day at $67.00 or 28.8% above issue and closed the week at $64.15.
Final Color
Our sources stated that the deal finished north of 20-times oversubscribed with the bottom-third of the book being completely shut-out. We heard from our sources that the roadshow was well-received and the color indicated that a strong pricing outcome would ultimately be the final outcome.
IPO Boutique Commentary
We believe the company was well-received due to an attractive valuation versus comps and this was further exasperated by the performance of comps in the sessions leading up to Etoro Group (ETOR US) ‘s debut. The primary comp in our opinion, Robinhood Markets (HOOD US) outperformed over the last two weeks. The tertiary comp, Coinbase Global (COIN US) rallied aggressively this week with its inclusion in the SPDR S&P 500 (SPY US) .
Furthermore, deal scarcity was in play with BlackRock locking down $100 million worth of the stock. A broad market rally over the first few sessions this week proved to be perfect conditions for an explosive IPO debut.
The Etoro Group (ETOR US) offering marks a major win for the IPO market as a more than 17-point premium at first trade is certainly enough to turn heads. The deal more than made the IPO Boutique ‘4’ rating and marks the largest premium at first trade in terms of points since ServiceTitan Inc debuted to a 30-point premium in December 2024. It is our opinion that the June IPO outlook is much rosier after the successful debut of this IPO this past week.
Next up for the IPO market are a pair of deals: Hinge Health and MNTN Inc..
.
English
Arabic
Chinese (Simplified)
Dutch
French
German
Italian
Portuguese
Russian
Spanish