Etoro surges 30% on first day of Nasdaq listing due to upward revision of IPO price

On the 14th (local time), cryptocurrency and stock trading platform eToro completed a successful debut on its first day on the Nasdaq, with its stock price rising by nearly 30%.
It is analyzed that ETOR's decision to revise its public offering price upwards across the board just before its listing had a positive impact. ETOR Group's stock price was $67 per share on the Nasdaq on that day.
The stock closed at $74.26, up 28.9% from the public offering price of $52. The stock briefly rose to $74.26 during trading, but then underwent some correction and was down 0.7% in after-hours trading.
The stock price hit $6.53. This brings eToro's market capitalization to over $5.5 billion. On the 13th, one day before the IPO, eToro set the public offering price at 46,000 yen, the previous range.
The company revised its target price to above $50, raising a total of $620 million. Initially, the company planned to raise $500 million by issuing 10 million shares, but ultimately sold 10 million shares to Itochu and existing shareholders.
In a May 5 filing with the U.S. Securities and Exchange Commission (SEC), Etoro said it had sold more than 11.92 million shares to some of the funds managed by BlackRock.
Etoro rival Robinhood Markets (bHOOD) fell 1.9% to 61.5% on the same day.
The stock closed at $1.39 a share, and fell another 1.63% to $60.39 in after-hours trading. In a public filing, eToro forecast its total cryptocurrency-related revenue (combined trading fees and withdrawal fees) for 2024.
The company said that cryptocurrency fees, including fees for cryptocurrencies, will reach $12.1 billion in 2020, up significantly from $3.4 billion in 2023. It also said that cryptocurrency fees will account for 30% of total transaction fees in the first quarter of 2025.
It forecasts a decline to 7%, down from 43% in the first quarter of 2024.