AAA Xoom offers up its flotation

Xoom offers up its flotation

Xoom, a US-based money transfer service, plans to sell 5.75 million shares at between $13 and $15 each in initial public offering to raise about $80m.

It would have an initial market capitalisation of about $438m, if it floated at $14 per share.

In August, the company had confidentially filed with US regulator Securities and Exchange Commission, according to news provider Reuters, but has confirmed its plans to list on Nasdaq stock exchange.

Investment banks Barclays and Needham are co-lead underwriters of the initial public offering 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%).

Leave a comment

Your email address will not be published. Required fields are marked *