INDEPENDENT NEWS

Xero Chief Boosts Stock Liquidity with $94.5M Share Sale

Published: Fri 17 Nov 2017 12:36 PM
Xero Chief Drury Boosts Stock Liquidity with $94.5M Share Sale as Exchange Switch Beckons
Nov. 17 (BusinessDesk) - Xero chief executive and founder Rod Drury sold $94.5 million of shares, boosting the accounting software firm's liquidity as it prepares to shift to a sole ASX listing.
Drury sold 3 million shares in a placement to institutional and professional investors at $31.50 apiece in his biggest transaction since taking the company public in 2007. Drury remains Xero's largest shareholder with 17.7 million shares, or about 13 percent.
The transaction comes hot on the heels of Xero's first-half earnings announcement when it posted positive pre-tax earnings and unveiled plans to delist from the NZX in favour of a sole listing across the Tasman, which it says will encourage a broader range of analyst coverage and a wider pool of investors.
Drury told BusinessDesk the sale was part of that strategy to improve liquidity in the stock with growing demand among global investors keen to back the company, which incorporates the move to a single-listing on the ASX.
"We've had global-grade investors wanting to invest in the company with really strong demand," Drury said. We got advice on how to clear up our shares to allow their funds to come in - that's what we've put together."
He said the $31.50 per share sale was a "good price", with the stock closing at $33 yesterday, having soared 89 percent so far this year.
Drury has watered down his stake in Xero before, his last being the sale of 1 million shares in 2015 at $20.01 apiece. When it listed, he owned 45 percent of the company with about 24.7 million shares, reducing that holding as the software company made headway around the world and attracted major institutional investors including big names such as Paypal co-founder Peter Thiel.
"One of the great things about going public is you can do this without selling the whole company," Drury said.
Drury said the funds will lay the foundation for his future plans for philanthropic and social endeavours, although his family will be looking after that for now while he focuses on Xero.
ENDS

Next in Business, Science, and Tech

Another First For Solar Energy In New Zealand
By: Sustainable Energy Association
More Boomers Than Zoomers Want To Work From Home - Accenture
By: Accenture
Maritime Union Says Deepening Supply Chain Crisis Requires Action
By: Maritime Union of New Zealand
Mercury Enters Into Binding Agreements To Acquire Trustpower’s Retail Business
By: Mercury
New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions
By: ASB Bank
Westpac New Zealand To Remain Part Of Westpac Group
By: Westpac New Zealand
TECT Comment On Trustpower Retail Business Sale
By: TECT
View as: DESKTOP | MOBILE © Scoop Media