Herbert Smith Freehills Kramer advises the Joint Lead Managers to Xero Limited’s placement and share purchase plan to raise up to ~A$2.05 billion

Herbert Smith Freehills Kramer is proud to have advised the joint lead managers to Xero Limited (Xero) on its capital raising to raise up to ~A$2.05 billion.

This comprised a fully underwritten institutional placement to raise ~A$1.85 billion (the Placement) and non-underwritten share purchase plan to raise up to ~A$200 million (the SPP, together with the Placement, the Offer). The securities being offered under the Offer comprise new fully paid ordinary shares.

J.P. Morgan Securities Australia Limited and UBS Securities Australia Limited acted as joint lead managers and underwriters for the Placement.

Proceeds from the Placement will be used to partially fund the acquisition of Melio Ltd. and transaction costs. Any SPP proceeds will be used for general corporate and working capital purposes.

The Herbert Smith Freehills Kramer team was led by partner Philippa Stone and supported by Senior Associates Henry Simpson and David Tilley, and Associate Bevan Wang.

Philippa Stone said, “We are delighted to have acted for the joint lead managers on this important capital raising.”

Xero were advised by Gilbert + Tobin and Sullivan & Cromwell LLP.

This deal is the latest example of Herbert Smith Freehills Kramer’s market-leading work in equity capital markets. Other examples include advising:

• Bank of America, Barrenjoey and Canaccord as joint lead managers on the redomiciliation and IPO of Greatland Resources Limited (Greatland), for a market capitalisation of A$4.9 billion, comprising a A$50 million primary raise and A$440 million selldown by existing shareholders.
• MA Financial Group Limited in relation to the successful $330m IPO and ASX listing of the MA Credit Income Trust
• Chemist Warehouse on its A$34 billion merger with Sigma Healthcare
• Vitrafy Life Sciences on its successful A$117.5 million IPO
• NEXTDC on its A$1.32 billion entitlement offer