WeTransfer Cancels IPO For Amsterdam's Euronext Due To 'Volatile Market'

WeRock, best known for the WeTransfer file transfer service, had planned to launch an IPO on January 28 on Amsterdam’s Euronext that would have valued the firm between 629 million and 716 million euros

Before cancelling the IPO, WeRock, the parent firm, had also slightly scaled back ambitions for the valuation of a part of it. Image: Getty

New Delhi: WeTransfer has cancelled its initial public offering (IPO) claiming volatile market conditions, the company said in an announcement on Thursday.  

WeRock, best known for the WeTransfer file transfer service, had planned to launch an IPO on January 28 on Amsterdam’s Euronext that would have valued the firm between 629 million and 716 million euros ($714 million-813 million), according to a report in Reuters.

The company in a statement said that it had made the decision to cancel the listing “despite substantial investor interest”. It will continue “pursuing our strategy and continuing our growth trajectory,” Chief Executive Gordon Willoughby said, adding that while we have decided not to proceed with our public listing due to volatile market conditions, our commitment to address the needs of our global community of 87 million monthly active users remains as strong as ever.”

Before cancelling the public listing, which was to have included both a primary and secondary share offer, WeRock had also slightly scaled back ambitions for the valuation of a part of it.

The IPO market closely reflects investors’ appetite for risk and they tend to become more reluctant to commit large chunks of cash to a single company if the broader economic environment is showing signs of strain.

Global stock markets have had a bumpy start to the year, with the EuroStoxx 600 technology index down 6 per cent since the firm announced its intention to float on January 12.

WeRock posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of 21.3 million euros on revenue of 72 million euros for the first nine months of 2021, and is targeting annual revenue growth above 20 per cent in the medium term.