Menu
Xero's trading halt on ASX attributed to revenue raising

Xero's trading halt on ASX attributed to revenue raising

MD says company in a far sounder financial position than its competitors in the Australasian market

Following Xero’s recent trading halt on the ASX, the accounting software company has announced AUD$158 (NZ$180) million of new capital.

At the time, Xero revealed to ARN that the trading halt was due to a capital raise related to the firm’s growth strategy, though an amount was not named.

The AUD$158 million of new capital comes from both US and New Zealand investors, as well as existing shareholders Matrix Capital Management and the Peter Thiel backed Valar Ventures.

Xero Australia Managing Director, Chris Ridd, said the additional funding comes as the software copany has $200m in the bank and no debt.

“Xero is in a far sounder financial position than our competitors in the Australasian market,” he said.

“We will continue to build a world class team and invest in our pure cloud accounting software model.”

Following the raise, the transactions are priced at AU$16 (NZ$18.15) per share for 9.92 million shares representing 8 per cent of the shares on issue.

Local customer base

Ridd said Xero’s client base in Australia has grown to 79,100 paying customers, which he said proves that SMBs want an alternative to traditional desktop solutions.

“Our popularity in Australia has given our shareholders confidence that we can replicate the same aggressive growth strategy in the US,” he said.

The news of additional funding comes as Xero begins its October roadshow around the country to meet and greet with new customers.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudsoftwareASXaccountingxero

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments