Sam Morgan, who made his fortune when Trade Me was sold to Fairfax Media, has trimmed his holding in Xero, taking advantage of a share price that has soared by 179% this year.
Mr Morgan, a director of Xero, sold 1 million shares at $7.40 apiece in an off-market transaction to New Zealand institutions. The sale reduces his stake to 4.37% of the company and means he is no longer classed as a substantial security holder.
"Xero is my largest individual investment and trimming my shareholding is something I've done simply to restore a bit of balance in my portfolio after Xero's share appreciation in 2012," Mr Morgan says in a statement.
Mr Morgan isn't the only director to trim his holding as the share price has sky rocketed. Last month, the company's three largest shareholders - chief executive Rod Drury, director Craig Winkler and co-founder Hamish Edward sold a total of $22 million shares at $6 apiece in parallel with Xero's $60 million sale of new shares at the same price to Peter Thiel's Valar Ventures and Matrix Capital Management.
That saw Mr Drury's holding reduce to 18.5% from 21%; Mr Winkler's drop to 15.7% from 19.5% and Mr Edward's to 4.9% from 5.7%.
Matrix now owns 9.8%and Valar holds 7% of the cloud-based accounting platform.
Last month Xero posted a wider first-half loss and said the loss will be bigger still in the second half as it takes on workers to chase global sales. Sales soared 119% to $17.3 million in the first half, while operating expenses rose 105% to $22.8 million.
Xero expects to double operating revenue in the full year and said it has sufficient cash to implement its strategy.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- How did Sealegs make a profit? David McKee Wright explains
- ‘Organisations that don’t put effort into employee engagement will be the companies of yesterday’ – Kronos' managing director Peter Harte
- In Editor’s Insight, Nevil Gibson says a New Zealander is helping to unlock the potential of Africa’s cities
- Abano CEO Richard Keys on the sped up timetable for selling the audiology stake
- Without cyber rules, business may struggle to fight back warns FireEye chief security strategist Richard Bejtlich