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Before the canceled IPO, WeTransfer intended to begin its first day of trading on the 28th of January.
WeTransfer parent company WeRock has terminated plans for its initial public offering (IPO) on Amsterdam Euronext. The company that owns WeTransfer announced earlier today that it would not be proceeding with the IPO plans as intended. According to the parent company, WeRock, the offering is canceled “due to volatile market conditions, notwithstanding the substantial investor demand received.”
Speaking on the canceled IPO plans, WeTransfer CEO Gordon Willoughby stated:
“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 strong as ever.”
Just last week, the WeTransfer parent company confirmed that it would still be going ahead with its IPO. At the time, the company said it would be offering €125 million in new shares. At the same time, WeRock planned to issue up to 5.4 million existing shares by its present shareholders and managers. The current shareholders include Highland Europe Technology and HPE Institutional Fund. Highland Europe Technology holds a 55% stake while HPE Institutional Fund has 13%.
Despite the setback, it appears WeTransfer stakeholders are not discouraged. A partner at Highland Europe, Irena Goldenberg, said Highland is committed to supporting WeTransfer and is optimistic about a future IPO. She added:
“WeTransfer has demonstrated a strong track record of profitable growth. The fact that market conditions mean the company will not list at this time in no way changes those intentions.”
WeTransfer Cancel IPO after Confirming to List on Amsterdam Euronext
Before the canceled IPO, WeTransfer intended to begin its first day of trading on the 28th of January, 9.00 CET. According to a press release issued on the 20th of January, WeTransfer said it would offer the shares within the price range of €17.50 and €20.50 per share. With the price range, WeTransfer was looking forward to a market valuation of between €629 million and €716 million on a fully diluted basis. Also, the company would have realized between €285 million and €290 million from the offering.
When WeTransfer earlier confirmed the IPO, it explained its intention for the proceeds. It intended to use part of the expected net proceeds to support the growth of the Group. Also, the company hoped to acquire and invest in businesses such as technologies, Software, intellectual property rights, and other assets. Also, WeTransfer intended to pay off management incentive plans and settle 23.4 million bills with proceeds generated from the IPO. To the success of the IPO, WeTransfer appointed Morgan Stanley (NYSE: MS) and BofA Securities as joint global coordinators. WeTransfer also said ABN Amro and Barclays Bank are acting as bookrunners.
In the first nine months of 2021, WeRock reported that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was 21.3 million euros on revenue of 72 million euros.