IPO
WeTransfer pulls IPO as tech stocks dip
January 27, 2022
Dutch file transfer service WeTransfer has abandoned plans for an initial public offering in Amsterdam, citing volatile market conditions.
The company, which announced its IPO intentions earlier this month, originally hoped to float on the Euronext exchange Friday, in an offering that could have valued the business at between €629 million and €716 million (about $700 million to $798 million). The transaction would have seen existing backers Highland Europe and HPE Growth sell an undisclosed number of shares.
The STOXX Europe 600 Technology index, which tracks tech stock performance in the region, is down nearly 14% from the start of the year. WeTransfer's decision comes a week after the company reduced its target IPO proceeds from €160 million to €125 million.
Both the quantity and total value of European listings are expected to decline this year, according to PitchBook's 2022 European Private Capital Outlook. Analysts anticipate that investors, flush with cash from recent exits, will prioritize new investments over creating liquidity, while mature companies seek out late-stage capital.
Related read: Stock market sell-off is already taking a toll on pre-IPO valuations
Featured image courtesy of WeTransfer
The company, which announced its IPO intentions earlier this month, originally hoped to float on the Euronext exchange Friday, in an offering that could have valued the business at between €629 million and €716 million (about $700 million to $798 million). The transaction would have seen existing backers Highland Europe and HPE Growth sell an undisclosed number of shares.
The STOXX Europe 600 Technology index, which tracks tech stock performance in the region, is down nearly 14% from the start of the year. WeTransfer's decision comes a week after the company reduced its target IPO proceeds from €160 million to €125 million.
Both the quantity and total value of European listings are expected to decline this year, according to PitchBook's 2022 European Private Capital Outlook. Analysts anticipate that investors, flush with cash from recent exits, will prioritize new investments over creating liquidity, while mature companies seek out late-stage capital.
Related read: Stock market sell-off is already taking a toll on pre-IPO valuations
Featured image courtesy of WeTransfer
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