Key Points:

Shares in software company Xero made a solid debut on the NZX yesterday, gaining up to 15 per cent on the issue price.

The $15 million Xero initial public offering was oversubscribed - and that was reflected in the gains made in the stock. The shares, issued at $1 each, traded in a range of $1.09 to $1.15 and closed up 10 per cent at $1.10.

Xero was founded by software entrepreneur Rod Drury, who retains a 45 per cent share of the business. The shares were issued mainly to institutional investors, as it was a venture capital-type investment that might not suit the average retail investor.

The company had the provision to raise $18 million but it was decided that $15 million was enough for the moment. The IPO was organised by First NZ Capital.