Xero Limited (ASX:XRO) Completes A$1.85bn Institutional Placement
Institutional Placement Completion
Xero Limited (ASX:XRO) has successfully completed a fully underwritten institutional placement, raising A$1.85 billion. The funds raised will be used to acquire Melio Limited and its associated entities, as well as to cover transaction costs. Approximately 10.5 million new fully paid ordinary shares were issued at A$176 per share, exclusively allocated to sophisticated and institutional investors.
Share Purchase Plan
In addition to the placement, Xero is offering a non-underwritten Share Purchase Plan (SPP) aiming to raise around A$200 million. Eligible shareholders can subscribe for New Shares at the lower of the Placement Price or a 2.0% discount to the five-day volume weighted average price (VWAP) of Xero shares. The SPP provides an opportunity for shareholders who did not participate in the Placement to acquire additional shares.
Executive Comments
CEO Sukhinder Singh Cassidy said, “We’re very pleased with the strong support we’ve received from both existing and new institutional investors for this Placement. We can’t wait to welcome Melio’s world-class team to Xero, once the transaction completes, and work together to deliver on our shared goals. Melio presents an incredibly exciting opportunity for Xero and we look forward to creating a market-leading Accounting and Payments offering that maximises value for our customers and supports our 3×3 strategy and US ambitions.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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