Our Share Purchase Plan was completed this morning. We were thrilled to raised a further $15.6 million from existing shareholders. The full announcement is here.
SPP takes Xero capital raised to over $35m
Online accounting software provider Xero (XRO) has raised a further $15.6m through its Share Purchase Plan (SPP), bringing the total capital raised in recent months to $35.6m.
Following a $20m private placement in February, the SPP was initiated to enable existing shareholders to increase their shareholding at the same price of $2.75.
The SPP exceeded the company’s expectations – more than 50% of eligible shareholders participated, investing on average in excess of $10,500. Following the SPP, shares issued will be 103.6m.
“This is a strong endorsement of our growth strategy from shareholders,” says Xero CEO Rod Drury.
“Xero is emerging as the leader in global online accounting. There are over 30 million small businesses in our current markets. Having achieved over 100% annual compound growth for the last four years, a million customers looks attainable. With substantial funding in place the company is uniquely positioned to support large scale growth which will see Xero become a significant global company.”
Xero is also pleased the NZX has provided an efficient mechanism for raising growth capital from domestic and international investors.
It was very important to us that all shareholders had the opportunity to participate on the same basis as our recent placement and we again thank our valued shareholders for their support.