UK trading platform eToro to go public in $10bn SPAC deal

Trading giant eToro has confirmed reports that it is due to list via a $10bn SPAC deal.

The Israeli fintech announced it would go public at a valuation of $10.4bn after merging with FinTech Acquisition Corp. V (FinTech V), a publically-traded SPAC run by American businesswoman Betsy Cohen.

A SPAC (special-purpose acquisition company) is a way for companies to go public without going through all the hassle and expense of an IPO (initial public offering).

Cohen founded Bancorp, a bank holding company based in Minneapolis, in 1999 and subsequently FinTech V, which raised $250m when it listed on the NASDAQ in December 2020.

As part of the deal, eToro will receive $250m raised in FinTech V’s IPO as well as $650m from a group of individual investors, including the likes of Fidelity, Softbank Vision Fund 2 and Third Point LLC, which has invested in the likes of Square, Alibaba and Facebook.

Yoni Assia, CEO of eToro said: “Today marks a momentous milestone for eToro as we embark on our journey to become a publicly-traded company with Betsy Cohen and the team at FinTech V.”

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Source: UK trading platform eToro to go public in $10bn SPAC deal – AltFi