Tuesday, October 21, 2014

Xero moving on US listing & IPO / in talks with Morgan Stanley Credit Suisse - Bain Capital prepared its Australian accounting software business, MYOB, for sale.

Tom Pullar Strecker for Stuff.co.nz writes: Xero is declining to comment on a report that planning for its United States listing has progressed to the stage where it is now in discussions with investment banks.

The Australian Financial Review reported Xero was working with Morgan Stanley and was in talks with Credit Suisse over its proposed US initial public offering (IPO), which it expected would be worth between $500 million and $1b. The report did not specify the currency or whether that might represent new capital, the sale of shares by Xero's existing investors, or a combination.
Xero spokeswoman Janna Wilkinson said Xero would make no further comment on the report other than that it would "consider listing in the US when the time is deemed right".
Xero chief executive Rod Drury is travelling to New York this week. He signalled at the company's annual meeting in July that Xero was likely to float in the US next year.
He told shareholders the company needed to surpass US$100m in annualised monthly revenues before it undertook the IPO, a milestone it has since achieved.
Xero shares were up 1.3 per cent at $16.10 in morning trading on the NZX. The company's market value dipped below $2 billion for the first time 16 months yesterday, when its shares touched an intraday low of $15.
The speculation over Xero's listing plans came as Bain Capital prepared its Australian accounting software business, MYOB, for sale.
Bain is taking sale pitches from investment bankers this week, for a deal which could happen in the first half of the 2015 calendar year.
It is understood Bain has asked Deutsche Bank, Morgan Stanley, Macquarie Capital, Citi, Goldman Sachs, UBS and Bank of America Merrill Lynch to pitch. 


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