Record trading in Xero ahead of inclusion to ASX All Ords
March 21 (BusinessDesk) - Xero, the cloud-based accounting software developer, reported record share trading today as about 2 percent of the company changed hands with turnover of about $117.7 million, ahead of its addition to the ASX All Ordinaries Index.
More than 2.7 million Xero shares were traded on the NZX today, topping the 2.57 million shares changing hands on May 31 last year, when then-chairman Sam Knowles and chief operating officer Alastair Grigg lodged notices to the stock exchange saying they had sold down their holdings in the software developer.
Of today’s trades, there were six transactions ranging from 100,000 to 600,000 shares, accounting for 1.59 million shares changing hands, according to Reuters data. The price fell 2.4 percent to $43.45, valuing the company at $5.54 billion.
On March 7, the Wellington-based company said it would be added to the All Ordinaries Index at the close of trading today. That means investors who track the index will need to buy the stock for their portfolios.
The stock is rated an average ‘hold’ based on two analyst recommendations compiled by Reuters, with a median target price of $35.23.
As at May 10 last year, 54, or 1.1 percent, of Xero’s 4,715 shareholders held 83.7 percent of the company, according to its 2013 annual report. It since raised $180 million, mainly from US investors, in a capital raising, giving it funds to pursue growth aspirations in the world’s biggest economy.
Chief executive Rod Drury is the biggest shareholder with a 17 percent stake, followed by MYOB founder Craig Winkler with 15.7 percent, according to substantial shareholder notices.