eToro Expects Q3 Closing of SPAC Deal

Fazzaco learned that eToro​, an Israeli social trading and multi-asset brokerage company, and special purpose acquisition company (SPAC) FinTech Acquisition Corp V announced that they will submit a Registration Statement confidentially, related to the proposed business combination between the two.

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

According to the official announcement, the merged companies will operate as eToro Group Ltd, and the estimated implied equity value will be around $10.4 billion at closing. The combined companies will raise $650 million from private placement in the public equity and $250 million from FinTech V's cash in trust. Additionally, private investors including ION Investment, Softbank and Fidelity will receive the equity at $10 per share.

The filing, again done with the U.S. Securities and Exchange Commission (SEC) as a confidential submission, is technically not an IPO prospectus but rather a draft registration statement on Form F-4, used for M&A deals involving publicly traded entities.

However it will contain much of the same detailed information an IPO prospectus would have. Many in the Retail FX space have been waiting to see more specifics on eToro’s business – exact revenue and profitability levels, client assets, trading volumes, how many of the company’s claimed 20 million “registered users” are actually revenue-generating clients… – but they will have to wait a little longer, until the company clears comments on the filing with the SEC.

The parties said that the business combination and thus eToro’s actual listing for trading on Nasdaq is now expected to close at some point in Q3. eToro’s combination with the SPAC is still subject to the approval of Fintech Acquisition’s stockholders, and the listing of eToro’s securities on Nasdaq.