XRO - Xero Limited

[Logique2]

Interesting. $176 SPP price sets a floor, given near term pressure of sp dilution.

From another source:
URL: https://www.raskmedia.com.au/2025/0...price-in-focus-on-3-9-billion-melio-takeover/
Xero (ASX:XRO) share price in focus on $3.9 billion Melio takeover

The Xero Ltd (ASX:XRO) share price is in focus after the accounting software company announced a major acquisition called Melio.
By: Jaz Harrison, June 25, 2025
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Highlights of funding:
-A$1.85 billion/US$1.2 billion institutional placement

-US$0.36 billion of new Xero shares will be issued to existing Melio shareholders

-US$0.4 billion unsecured revolving credit facility

-Xero will use US$0.6 billion of existing cash on its balance sheet

-SPP: the maximum application size will be A$30,000 per shareholder, at price of either $176 or a 2% discount to the average Xero share price for the five days up to 21 July 2025

 

[JohnDe]

I was presuming that the SP will go up, but share markets are a fickle beast. It looks like a drop in price is on the agenda.

Xero will resume trading on Thursday, after entering a halt at $194.21 for the raise, and is likely to come under pressure.​

Xero chief executive Sukhinder Singh Cassidy is hailing the strong support from existing and new institutional investors after it successfully raised $1.85bn to fund its purchase of US payments business Melio.

Xero is funding the $4bn plus ‘step-change’ deal, announced on Wednesday, through the institutional placement, $US360m of Xero shares issued to Melio shareholders, a fully underwritten $US400m credit facility, and $US600m of cash.

“Melio presents an incredibly exciting opportunity for Xero…” Ms Singh Cassidy said of her first big purchase since taking charge of Xero in 2023.

Approximately 10.5 million new fully paid ordinary shares in Xero at the price of $176 per share will be issued under the placement. Settlement is expected on June 30, with allotment and normal trading expected to occur on July 1.

Xero will also offer eligible shareholders the opportunity to participate in a non-underwritten share purchase plan, where it is targeting $200m. Details of that will be revealed around July 2.

Xero will resume trading on Thursday, after entering a halt at $194.21 for the raise, and is likely to come under pressure.

 

[ShareSuccess]

Interesting Stock, has some nice growth going forward & i would consider buying below 117.....Never say never ha ha

 

[galumay]

Highly hazardous capital allocation IMO, signals they were unable to make much traction in US so have to buy market share. Record of large US acquisitions by ASX companies has in the main been very poor outcomes for shareholders!

If I were a holder I think I would sell and watch.

As a potential buyer, my price is much lower than it already was. (my range of IV was around $80)

 

[Ferret]

SPP opened today.

XRO is now trading under $178, so I'm not rushing to participate at the lower of $176 or a 2% discount to market.

Let's see how things look closer to the 21st July closing date.

 

[JohnDe]

SPP opened today.

XRO is now trading under $178, so I'm not rushing to participate at the lower of $176 or a 2% discount to market.

Let's see how things look closer to the 21st July closing date.

SP is slowly increasing, maybe the SPP will be worthy of a buy.

 

[Ferret]

SP is heading in the right direction this week and now over $180.

I'll bite the bullet and throw some cash at the SPP today.