Xero coffers bulge with $60m raising

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

Relevant offers

National business

US stocks slide as Brexit takes Wall Street investors by surprise Clothing website ASOS remains down, Brexit blamed International hotel Sofitel Wellington fights $350k development fee - and succeeds Government may step in if Auckland doesn't put a new city plan in place Could Flagstaff be Hamilton's first million dollar suburb? We won't own cars any more - we'll share them, forecasts Toyota NZ boss Sensory overload at Feast for the Senses festival to beat midwinter blues Unexpected Brexit triggers Australian dollar fall Brexit: NZ politicians weigh in on referendum Invercargill MP goes fishing for new aquaculture ideas in Norway

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