Rod Drury set for $95 million pay day from Xero share sale

Xero chief executive Rod Drury is set to net nearly $95 million from selling shares in the company. Photo / Jason Oxenham

Xero founder Rod Drury is set to make $94.5 million in a selldown of shares in his accounting software company.

The company announced this morning that it was aware of a likely successful sale of three million shares in Xero by Drury to institutional and professional investors.

At a sale price of $31.50 a piece he will make $94.5 million from the sale.

Drury will remain the largest shareholder in Xero even after the share sale with a stake of 12.8 per cent and 17.7 million shares.

In a statement to the stock exchange Drury said the sale was consistent with Xero's global growth aspirations to broaden its investor base.

Xero recently announced it would de-list from the NZX, citing a desire to consolidate its dual NZX and Australian listings.

"The strong demand and support from our existing and new shareholders is a validation of our long term growth strategy and execution," Drury said.

"Consistent with our global growth aspirations, broadening our investor base with aligned institutional shareholders is an effective way to increase the company's free float and drive additional liquidity in Xero shares."

Drury said the sale would allow him to pursue a range of philanthropic and social endeavours in the future.

"Xero remains my absolute day to day focus as we have so much opportunity.

"I'm as passionate about Xero today as the day we founded the business and I'm proud of what we have achieved as a company, evidenced by our strong recent financial results. We have a lot more to do in order to realise our global growth aspirations, and I remain fully committed to Xero and building our global business from New Zealand," he said.

Xero shares opened at $32.50, down from yesterday's closing price of $33.