eToro plans to go public over R $ 50 billion

The investment platform eToro announced on Tuesday (16) that it has agreed to go public through a merger with FinTech Acquisition Corp. V.

FinTech Acquisiton Corp. V is a publicly traded special purpose acquisition company (SPAC). Such companies are also known as “blank check companies”.

Thus, alongside the blank check company, eToro will go public with a combined equity of $ 10.4 billion.

After the transaction is closed, the combined company will operate as eToro Group Ltd. and should be listed on the NASDAQ.

eToro to be valued at $ 10.4 billion

According to a press release, the deal includes $ 250 million in gross proceeds from Acquisition Corpo’s trust money (assuming there are no redemptions).

Likewise, it includes a private placement commitment of $ 650 million from investors. The list of companies includes: SoftBank Vision Fund 2, ION Investment Group, Third Point LLC, Fidelity Management & Research Company LLC and Wellington Management.

EToro also pointed out that it is expected that there will be approximately US $ 800 million of net cash on the balance sheet to support future growth.

Yoni Assia, eToro’s CEO, highlighted that the company seeks to open the global market for simple and transparent investment.

“Today, eToro is the world’s leading social investment network. Our users come to eToro to invest, but also to communicate. To automatically see, follow and copy successful investors from around the world, ”he said.

Betsy Cohen, chairman of the Board of Directors of Acquisition Corpo, highlighted that eToro meets three pre-established criteria: great growth, effective controls and excellent management teams.

“In recent years, eToro has solidified its position as a leading online social trading platform outside the United States, outlined its plans for the United States market and diversified its revenue streams. It is now at an inflection point for growth. We believe that eToro is uniquely positioned to capitalize on this opportunity. ”

EToro was founded in 2007 in Israel by Assia, his brother Ronen and David Ring. Today, the company has more than 20 million registered users who share its investment strategies.

In other words, the platform allows amateur investors to mirror more experienced operators on the platform.

Phenomenon of SPACs

In 2020, SPACs grew significantly in terms of popularity. As CNN reported, a total of 229 SPCs raised $ 76 billion (about R $ 425 billion) last year.

And this year is no different. In the first three weeks of 2021 alone, SPACs raised US $ 16 billion (about R $ 89.5 billion).

In addition, the SPACinsider website has already registered 258 SPAC IPOs this year. By way of comparison, in 2020 there were 248 in all and, in 2019, only 59.

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