By NZPA
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Tuesday 5th June 2007 |
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The shares opened at $1.11, rising to a high of $1.15 before closing at $1.10. Over 300,000 shares changed hands, around 2% of the stock issued in the recent initial public offering (IPO).
"In a real high profile listing, turnover could be 5 to 10% of the issued capital, but that doesn't say it's a bad issuing, it's just a low profile float," ASB Securities broker Stephen Wright said.
He called it a "creditable listing".
The company raised $15 million in the IPO, issuing shares at a $1 each. It has 55 million shares on issue, so today's price gives it a market capitalisation of $60.5m.
Xero has 1167 shareholders following the IPO, in which the company said it chose not to accept oversubscriptions. The prospectus had said it could raise up to $18m.
Founders Rod Drury and Hamish Edwards now have 45% and 13% stakes respectively in the company.
Xero Live is a web-based accounting software product aimed at small to medium-sized businesses.
The capital from the IPO would be used to establish the business in New Zealand, do market research and take the first steps towards setting up sales and marketing teams in Australia and Britain.
Xero is the first solely New Zealand float on the stock exchange this year. As in recent years, there have been a dearth of IPOs on the stock exchange.
The Wellington company is the brainchild of software entrepreneur Drury -- who last year sold his email storage company AfterMail to US software maker Quest for more than $60m.
Drury -- who will be Xero's chief executive -- said that until now the company had been putting its resources into building the product and proving it worked.
Graham Shaw, Guy Haddleton and Trade Me founder Sam Morgan are the other independent directors on Xero's board.
The independent directors agreed to invest $1.35m, while strategic partners and other investors took another $5m.
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