Interesting discussion on NBR regarding Xero's public listing. I'm following Xero very closely to see how the SaaS SME business model works. It's interesting to see that they are going to market to get 18 Million shares for a company that at list date will only have 100 customers. Doing some quick sums at $40 per customer per month - that's annual projected revenues of $48,000 at listing. Clearing it's a bet on the future, definitely not on the "now" of Xero. I can see why some may be cooling about buying into Xero. Xero is a good concept and very interesting idea but will people really want a piece of this given the risk profile? I'm definitely waiting and watching and agree with the market sentiment mentioned in the NBR article.
I guess what worries me about the whole Xero listing is the overhyping…. Many people got burnt in the .COM boom and bust through many other hyped technology startups. Xero could well be different – Rod's experience at the helm will help but I think the market will quickly determine how successful Xero will be.
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