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Sumamry
- Investment platform eToro is likely to go public in the current quarter. Investors have been comparing its much-awaited initial public offering with Robinhood.
- eToro will go public in a SPAC merger with FinTech Acquisition Corp. V, in an estimated valuation of around US$ 10.4 billion.
- GoTo is planning to file for dual listing in Indonesia and the US by the end of 2021. The company is valued at US$ 18 billion.
The cryptocurrency market and fintech payment firms have registered unprecedented rise in transactions throughout the COVID-led lockdown period. Many of these companies have also been exploring public listing to bolster their businesses.
Here are two upcoming crypto and fintech IPOs to explore:
eToro IPO
The Israeli investment platform eToro is likely to go public via a special purpose acquisition company (SPAC) merger listing. The company is in talks with FinTech Acquisition Corp. V (FTCV:US, NASDAQ:FTCV) to apply for this initial public offering in the third quarter of 2021. The new firm will be named as eToro Group Ltd.
The company expects to raise US$ 250 million through this deal. The fintech stock is currently trading at US$ 11.67 apiece, with a market cap of nearly US$ 400 million for all share classes.
On August 4, eToro’s SPAC stock jumped almost 16 per cent as analysts compared it with Robinhood's (HOOD:US, NASDAQ:HOOD) IPO, which has skyrocketed by 100 per cent in one week. The blank check company went public on the NASDAQ stock market in mid-March, with a proposed merger with the Israeli investing platform. eToro is likely to open its IPO with a valuation of US$ 10.4 billion.
eToro earns its net income from investors using its trading platform to invest in publicly listed companies and cryptocurrencies. It offers a free trading account with a minimum initial investment of US$ 50. It charges a withdrawal fee of US$ 5 per transaction in stocks and exchange-traded funds (ETFs). On crypto, investors incur US$ 1 to US$ 50 per transaction.
Image source: @pichetw, Shutterstock
GoTo IPO
Communication app Gojek and e-commerce startup Tokopedia merged and formed a joint entity GoTo in May 2021. One of the leading Indonesian companies expects to get listed by the end of this year.
Gojek raised US$ 5.3 billion as of January 2021. It has investors like op investors like Google, Tencent, GCI, and Sequoia. E-commerce giant Tokopedia has also expanded its operation in fintech and payments after raising US$ 2.8 billion in funding. The joint entity’s fundings stood at US$ 8.1 billion in the first quarter of 2021. However, the merged company’s valuation stood at nearly US$ 18 billion at the end of Q1 2021.
The combined firm is said to file applications for listing on Indonesia Stock Exchange and the US stock market. It has its businesses across Southeast Asia and is likely to expand its footprints in the United States. The company has over 113 million customers in digital shopping, payments, and Micro, Small, and Medium Enterprises (MSMEs).
