Xoom, a US-based money transfer service, has raised $101m in its Nasdaq stock exchange flotation and promptly saw a 59% rise in its share price after the initial public offering (IPO).
Xoom listed 6.33 millin shares at $16 each for a market capitalisation of $509m compared to plans to sell 5.75 million shares at between $13 and $15. At the end of the first day of public trading, Xoom’s shares closed at $25.49 each.
Investment banks Barclays and Needham co-led underwriters of the IPO for a company that posted a $4.4m net loss on $58m in revenue for the first nine months of 2012.
Xoom secured $25m in financing from existing investors in 2011, as part of a $58m series F round raised between 2009 and 2011 at $11.45 per share.
Signatories of the filing included executives from Volition Capital (formerly Fidelity Ventures, a corporate venturing division of financial services corporation Fidelity Investments, before its independence), as well as venture capital firms Sequoia Capital and New Enterprise Associates.
Xoom’s investors also include SVB Capital, the private equity division of the Silicon Valley Bank, and VC partnership DAG Ventures, though it is unclear whether either were involved in the latest funding round.
Xoom’s series F round in March 2010 raised $33.3m. The 2011 investment took Xoom’s overall funding to $102m since it was founded in 2001.
The regulatory filing said investors with more than 5% of the company included Sequoia (21.7%), New Enterprise Associates (19.1%), Fidelity Ventures (12%), DAG Ventures (8.4%) and T Rowe Price (8.7%).