eToro Submits Draft Registration for Its SPAC Merger

eToro Submits Draft Registration for Its SPAC Merger

June 3, 2021

Israeli brokerage eToro has filed a draft registration statement with the US Securities and Exchange Commission (SEC) for its merger with FinTech Acquisition Corp. V, a blank check company.

Announced on Wednesday, this the first official filing of the broker relating to the upcoming merger with the US financial markets regulator. However, it was only a draft registration statement on Form F-4 and not a prospectus for public listing.

After many rumors, eToro officially confirmed its decision to go public with the SPAC merger earlier this year. Both eToro and FinTech Acquisition Corp. V will operate eToro Group Ltd, which will have an estimated implied equity value of around $10.4 billion at closing. This valuation will put the enterprise value of eToro at $9.6 billion on its public debut.

Both the companies are now expecting to close the merger deal by the third quarter of 2021.

“The business combination is expected, subject to customary closing conditions, including the approval of FTV’s stockholders and the listing of eToro’s securities on The Nasdaq Capital Market, to close after the SEC completes its review process of this confidential submission and any subsequent public filing and declares such public filing to be effective,” the announcement stated.

Public Listing Will Make Business Transparent

eToro has grown into one of the largest brokerage platforms with regulated operations across many countries around the world. Established as a social trading platform, the broker is offering trading services with all popular asset classes, including stocks and cryptocurrencies.

The rise of the Israeli broker was also pushed by the retail trading boom in 2020 that added 5 million new users to the platform. eToro generated gross revenue of $605 million last year, which jumped by 147 percent year-over-year.

The upcoming IPO prospectus of the broker will be interesting as it will give much of an insight into its business operations.

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