Xero coffers bulge with $60m raising

TOM PULLAR-STRECKER
Last updated 12:53 30/11/2012

Relevant offers

Industries

TVNZ acknowledges Netflix's influence on market with online revamp Reading cinema gets $27.5 million for earthquake damage to Courtenay Central Chart of the day: Peaks and troughs in bonds for Dunedin rentals Home building costs climb 3.5pc, but they should start to ease Environment Minister Nick Smith announces $19m plan to deal with 'blot' of tyre mountains Holiday-makers and migrants still finding NZ attractive Fairfax NZ photo library set to return home after US wrangle Reserve Bank keeps official cash rate on hold Risk averse? That's no way to describe New Zealanders, Sir Ray Avery says Former Commerce Commission boss to lead ATEED

Xero has raised $60 million by selling 10 million new shares at $6 a share to United States investment companies Matrix Capital Management and Valar Ventures.

Xero chief executive Rod Drury, fellow co-founder Hamish Edward and director Craig Winkler have also sold an additional $22m of their own shares in Xero to the US firms, diluting their personal stakes in Xero.

Drury's stake in Xero drops from 21 per cent to 18.5 per cent. He said he netted about $5m from the sale of 833,000 shares.

Matrix has invested $58m in Xero through the transactions, Xero said, while the value of Valar's additional investment was $24m.

Drury told analysts earlier this month that Xero might seek to raise additional capital in order to invest in a call centre in the United States' mid-west to boost its growth in the country, though a spokesman had later sought to play down that speculation.

Xero's shares were up 4 cents at $6.48 in lunchtime trading.

Ad Feedback

- The Dominion Post

Special offers

Featured Promotions

Sponsored Content