Xero’s IPO is successful

Well done to Xero – who managed to raise the $15m targeted in their IPO. That will see them out for a year or two.

It seems that investors got the first 5,000 shares asked for, and half of the rest. That’s for the ‘public pool’, which was, as far as I can make out ‘approximately $8.65m’ (page 16 of the prospectus). If we say that the reserved shares were allocated to 37 investors, then the average investment for the remaining 1130 investors is $7,655. However, the distribution of investment varies, and you would expect a bunch of investors at or near the minimum ($1,000). I did (made up) a quick and dirty distribution, and am picking that about 250-350 investors put in $5000 or more, unless there were a few huge investors in the public pool.

Interestingly trading in the shares will begin at 11am on (tomorrow) Tuesday the 5th of June, while allocations can only be confirmed from 9am on the same day. That could make for a thin market on Tuesday – which may mean volatility.

Published by Lance Wiggs