Xero coffers bulge with $60m raising

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

Relevant offers

National business

Wellington mayor takes a swipe at landbankers on city fringes, lowers rates increase No smokes without fire: Philip Morris' 'Heat not burn' tobacco sales under scrutiny House investors hit record in Auckland, first home buyers fall: CoreLogic What's the deal with Facebook and tax? Rob Stock: I'm not saving for a stranger Chart of the day: Auckland's ageing population Financial advisers cluster around wealth, Financial Markets Authority Census shows Importers and exporters expect dollar to tread water Business outlook brighter in Wellington than nationwide, local bosses believe Digital talent takes flight with Air New Zealand

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