WeTransfer cancels tomorrow’s IPO amid market turmoil
Tech company WeTransfer announced it canceled its IPO in Amsterdam set for Friday due to the market volatility on the stock exchanges. Share prices have fallen sharply recently due to investor concerns about potentially rapid interest rate increases in the United States meant to combat high inflation. Tech stocks in particular were hit hard as a result.
WeTransfer announced earlier this month that it wanted to list shares on the Amsterdam exchange. The company owns the digital file transfer service of the same name. It was aiming for a market value of up to 716 million euros. With the money raised during an IPO, WeTransfer planned to grow further, with acquisitions one of its intended strategies.
The company mainly focuses on the creative sector, offering other services, like its online notepad Paper, digital scrapbook Collect, and Paste, a tool to create presentations. There is a free version of the company’s file transfer service that includes advertising, and premium versions offered at a monthly price. The company has 87 million users and 387,000 subscribers.
In a statement, WeTransfer CEO Gordon Willoughby said he remains committed to executing the strategy and continuing the company's growth trajectory.
Reporting by ANP.