WeTransfer is abstaining from an Amsterdam IPO. The file-transfer service was scheduled to be listed on Friday.
WeTransfer is cancelling the IPO due to market conditions. The organization is likely discontent with the financial gain of a listing at this time. The company does not indicate whether it is considering an IPO at a later date.
This week, it became increasingly clear that WeTransfer moved to accelerate the timing of its planned IPO. Poor market conditions were the primary motive.
Less than anticipated
Through listing, the company hoped to issue an amount of 160 million euros in shares. WeTransfer aimed for a total IPO value of 716 million euros. Experts estimated its actual value between 1.1 billion and 1.9 billion euros.
WeTransfer wanted to use the money raised to realize growth plans. The company seeks to further develop its existing products. The file-transfer service also wants to make acquisitions to expand its offering.
Poor market conditions have hindered WeTransfer’s IPO for some time. Last year, it cancelled a listing due to the deteriorating investment climate resulting from the pandemic.