Sam Morgan reduces Xero stake
Sam Morgan has cashed in on the rocketing price of sharemarket darling Xero by selling down $7.4 million worth of his holding.
The Trade Me founder and Xero director sold 1 million shares to institutions for $7.40 each today, a 180 per cent gain from the price just 12 months ago.
Morgan said in a statement to the NZX that he remained "completely committed and excited" about the cloud accounting software firm.
"Xero is my largest individual investment and trimming my shareholding is something I've done simply to restore a bit of balance in my portfolio after Xero's share appreciation in 2012."
Morgan still owns 5.1 million shares, but his holding has now slipped beneath the 5 per cent threshold used to determine substantial investors.
At present market valuation, the rest of his stock would be worth a further $37.7m.
Last month, Xero reported an interim net loss of $7m for the six months to the end of September.
The company has ambitious plans to build its presence in the United States and several other key markets.
Chief executive Rod Drury said losses were likely to grow in the second half of the year, but he also expected operating revenues to double.