(Dec 6): eToro is working with Goldman Sachs Group Inc on a potential initial public offering (IPO) in the US, according to people familiar with the matter.

The trading and investment platform is considering going public as soon as the second quarter, though that timeline is subject to change, the people said. The company has said it could seek a valuation in a listing above the US$3.5 billion (RM15.5 billion) figure it achieved in a private funding round last year.

Details of the offering including timing could change and more banks may be added to the line-up, the people said, asking not to be identified as the information isn’t public. eToro and Goldman Sachs declined to comment.

A listing would come as enthusiasm for the cryptoassets eToro users can trade on its platform reaches new heights, on the heels of US President-elect Donald Trump picking a crypto-friendly businessman to succeed the outgoing chairman of the US Securities and Exchange Commission. The move could open the door to more crypto-related IPOs and other offerings, and sent the price of bitcoin surging past US$100,000.

The company’s US arm, eToro USA LLC, agreed in September to pay US$1.5 million and to restrict the cryptocurrencies on its platform for US users, to settle allegations that it operated as an unregistered broker and clearing agency. The platform entered into a cease-and-desist order without admitting or denying the allegations.

Last year, the firm completed a US$250 million funding round that valued the company at US$3.5 billion. Its investors include ION Group, SoftBank Vision Fund II and Velvet Sea Ventures.

Founded in 2007, eToro offers a platform that lets users trade and follow top investors in assets including stocks and cryptocurrencies. It has more than 38 million registered users from 75 countries, according to a recent statement.

eToro previously attempted to go public through a merger at a US$10.4 billion valuation, with a special purpose acquisition company led by serial dealmaker Betsy Cohen. The parties mutually agreed to terminate the deal in 2022.

Uploaded by Tham Yek Lee