eToro Lowers Valuation to $8.8B to Save SPAC IPO

Retail FX broker eToro has lowered its valuation to $8.8 billion post IPO due to the company's plan to go public via a merger with special purpose acquisition company (SPAC) FinTech Acquisition Corp V in trouble. While the original deal announced in March 2021 was for eToro to be valued post-deal at about $10.4 billion.

The amended agreement also extends the allowed timetable for deal closing by six months from today, December 31, to June 30, 2022. One of the key conditions for the deal to close is for eToro's registration statement on Form F-4 be declared effective by US regulators, and that hasn't happened yet.

In the middle of March, eToro confirmed that it will merge with Special Purpose Acquisition Company (SPAC) FinTech Acquisition Corp. V for publicly listing its shares on Nasdaq.

Additionally, the broker has published its preliminary financials for the fourth quarter ending December 31, 2021. According to the company, its total commissions of the full year reached approximately $1.2 billion, representing more than 100% year-over-year growth.