Xero raises $5.8m in share purchase

Online accounting software company Xero raised $5.8 million in a share purchase plan that closed on Monday.

The company said 70 per cent of shareholders opted to buy up to $5000 worth of shares at a purchase price of 90c.

The plan took to $29m the amount of capital raised recently by Xero, which last month reported raising $23.2m through a strategic placement.

Craig Winkler, co-founder and former chief executive of MYOB, who was a major investor in the strategic placement, joined the Xero board yesterday.

Xero's share price was down 2c in early trade today to $1.35, having ranged between 67c and $1.70 in the past year.

- NZPA