Xero coffers bulge with $60m raising

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

Relevant offers

Industries

Augmented reality future, but not yet Media Take: Kiwis shouldn't be embarrassed about protesting - Miriama Kamo Tax cuts 'very important', but not top priority for most Kiwis Briscoe silent on Kathmandu, but says ASX listing would create 'opportunities' Is Steven Joyce's first Budget a family affair? Alex Swney, former high flyer now bankrupt, will live a 'downgraded' lifestyle on prison release Rocket Lab test launch postponed a second time NZ trade minister Todd McClay scores early invitation from US counterpart MYOB billboard gets 'f-word' makeover Mark Fields out at Ford; new CEO Jim Hackett known for turnarounds

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