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!

Error: Please check your email address.

Tags CloudsoftwareASXaccountingxero

Featured

Slideshows

Looking back at the top 15 M&A deals in NZ during 2017

Looking back at the top 15 M&A deals in NZ during 2017

In 2017, merger and acquisitions fever reached new heights in New Zealand, with a host of big name deals dominating the headlines. Reseller News recaps the most important transactions of the Kiwi channel during the past 12 months.

Looking back at the top 15 M&A deals in NZ during 2017
Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Show Comments