More than a year after abandoning its intentions to go public in a merger through a blank-check firm, Israeli digital stockbroker eToro has agreed to a $120 million secondary share sale, a source familiar with the situation told Reuters on Monday.
According to an internal memo whose contents were confirmed by a company representative, the company is giving its workers and angel investors a chance to sell shares to eToro’s current investors through the secondary market.
“This is not a primary, i.e., eToro is not raising money, rather it is a moment for some long standing shareholders and employees to take some liquidity,” eToro CEO and co-founder Yoni Assia said in a memo about the sale that was first reported by CNBC.
The CNBC report said the sale will give the company a slightly lower valuation than the $3.5 billion it was valued at in a primary funding round earlier this year.
EToro in March raised $250 million from investors including SoftBank Vision Fund 2 and Velvet Sea Ventures that valued the company at $3.5 billion, which was again far lower than the valuation the SPAC deal had offered last year.
The scrapped merger with Betsy Cohen-backed blank-check company FinTech Acquisition Corp would have valued eToro at $8.8 billion.