WeTransfer’s parent company WeRock N.V. confirmed this morning that it will float on Euronext Amsterdam, with a market cap ranging from €629m (£524m) to and €716m (£596m).
The price range for the shares has been set at €17.50 and €20.50 per share, with the first day of trading expected on January 28.
WeTransfer intends to use part of the expected net proceeds to support and further develop the growth of the firm, to finance acquisitions and investments.
The company’s owner WeRock NV will be renamed The Creative Productivity Group immediately prior to admission. Underwriters have the option to sell additional shares in the offering, which could boost the deal size to as much as €290m.
Gordon Willoughby, chief exec of the file-sharing platform group, said: “Today’s announcement represents another significant step on our journey towards an initial public offering on Euronext Amsterdam. The creative community remains at the heart of everything we do. It has allowed WeTransfer to establish itself as a trusted, authentic brand among its community of 87 million monthly active users.”
“Our focus remains on continuing to offer creative productivity tools that address the specific needs of our community, while we continue our growth trajectory and deliver sustainable value to all our stakeholders over the long term.”
Swetha Gopinath, Bloomberg capital markets reporter, commented: “WeTransfer and its backers seek as much as 252 million euros ($286 million) in an Amsterdam initial public offering, in a key test of investor appetite as the rout in tech stocks deepens.
“The file-sharing platform is looking to raise 125 million euros in the listing, less than the 160 million euros initially targeted, amid a bad start to the year for the tech sector. The deal values WeTransfer at as much as 716 million euros.”
Tech shares have been caught up in a rotation out of “frothy growth assets”, said Gopinath, and the prospect of interest rate hikes pushes bond yields higher. The Stoxx 600 Index’s technology subgroup is the benchmark’s worst performer this year.