WeTransfer Pulls Amsterdam IPO Over Market Volatility

Netherlands file-sharing company WeTransfer is pulling the plug for an initial public offering (IPO) in Amsterdam due to market volatility, according to multiple media reports on Thursday (Jan. 27).

The company was slated to start trading on Euronext Amsterdam (AEX) on Friday (Jan. 28) and was initially seeking to raise €160 million ($182.7 million) in the offering. Last week, however, WeTransfer dropped 20% off its proceeds target, changing the amount sought to €125 million. The startup’s estimated valuation of €716 million ($799 million).

CEO Gordon Willoughby said in a statement that it was a tough decision to call off the IPO, especially with investor interest being so high, but the company is looking ahead to continue plans for growth and other moves aligned with its strategy, Reuters reported.

See also: WeTransfer to Seek Amsterdam IPO

“WeTransfer has demonstrated a strong track record of profitable growth,” Irena Goldenberg, a partner at Highland Europe, which holds a 55% stake in WeTransfer’s parent company WeRock, told Reuters.

She added that Highland would continue to help WeTransfer grow and thinks there could be a possible listing sometime in the future.

WeRock posted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of €21.3 million on revenue of €72 million from January through October of 2021.

Read more: Two-Thirds of 2021’s IPOs Now Trading Below Offering Price

Founded in 2009 by Dutch entrepreneurs Bas Beerens and Nalden, WeTransfer’s cloud-based software enables people to send large files online. It has 87 million monthly active users in 190 countries and a workforce topping 300 people.

“Collaboration plays have become a tricky IPO proposition,” Patrick Basiewicz, an analyst at broker FinnCap, told Reuters. “WeTransfer seemed solid, but this mistrust, current market volatility and rich offer valuation should not make the IPO withdrawal too surprising.”

WeTransfer has other options to consider, with an M&A or a future listing being possibilities, a source close to the matter told Bloomberg.

Global coordinators for TransferWise were Morgan Stanley and Bank of America. Bookrunners were ABN Amro Bank NV, Oddo BHF SCA, and Barclays Plc.