TipRanks
7 min read
In This Article:
After a record-setting surge in 2021, IPO activity took a sharp downturn in 2022. Since then, the market has been gradually regaining its footing, with the past two years showing a steady upward trend in both the number of IPOs and total proceeds raised. Early data from the first quarter of 2025 suggests that this positive momentum is continuing.
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In 1Q25, 59 companies went public, marking a 55% jump from the 38 IPOs recorded in the same quarter last year. However, despite the increase in volume, total proceeds remained largely flat at $8.9 billion, up just $100 million year-over-year.
Several key factors appear to be fueling this renewed activity: broad market strength despite early-year volatility, expectations of a pro-business stance under the Trump Administration, anticipated interest rate cuts as inflation continues to ease, and a burst of innovation across AI, cybersecurity, and fintech – all helping to restore investor appetite for newly listed companies.
Against this backdrop, Citi analysts have zeroed in on two newcomers. Both companies have caught Wall Street’s eye, but Citi is leaning firmly toward one as the stronger long-term play. To see how that view stacks up across the Street, we turned to the TipRanks database. Let’s dive in.
eToro Group (ETOR)
The financial markets operate on a global platform, and the first IPO stock on our list embodies that. eToro is a popular platform that blends online investing with elements of social media, a combination it has leveraged for ongoing success.
From its base in Tel Aviv, eToro oversees a network of offices in important global financial centers: in the UK, the US, Cyprus, Australia, Germany, and the UAE. eToro has more than 3.5 million funded accounts, with traders in 75 countries. The company has described its mission as giving investors a simple and transparent platform for online trading.
eToro was founded in 2007, and earlier this year, after 18 years of operation, the company went public through an IPO. The initial announcement of the stock offering specified that 10 million shares would go on the market, 5 million from the company and 5 million from ‘certain existing shareholders.’ On May 13, the company amended that, upsizing the offering to 11,923,018 shares, again split evenly between eToro and existing shareholders. The initial price was set at $52 per share, above the originally planned range of $46 to $50. and the stock started trading on the NASDAQ on May 14, with the company raising ~$310 million from the IPO. eToro currently boasts a market cap of approximately $5 billion.
