Menu
Xero eyes “next phase” of growth amid NZX departure

Xero eyes “next phase” of growth amid NZX departure

Xero has finalised its efforts to consolidate its publicly-issued capital on the ASX, a move it claims will bolster its global expansion plans

Xero founder and chief executive Rod Drury.

Xero founder and chief executive Rod Drury.

Xero has rolled all of its publicly-listed shares onto the Australian Securities Exchange (ASX), formally withdrawing from the New Zealand Stock Exchange (NZX).

The move comes around three months after the New Zealand-founded cloud accounting provider confirmed it would delist from the NZX and consolidate its listing to the ASX.

“Xero is an ambitious New Zealand company. We will remain headquartered in Wellington and domiciled in New Zealand,” Xero CEO, Rod Drury, said at the time.

Now that the move is complete, the company has reiterated its reasons behind the consolidation, saying that the sole ASX listing provides the right platform for the “next phase of our growth”.

“Xero remains focused on its strategic priorities around product development and continuing to expand its geographic footprint and we are excited about the opportunities ahead,” the company said in a statement.

The company said that consolidating its listing on the ASX, rather than across two stock markets, should provide longer-term access to a broader marketplace for its shareholders.

“It is expected to create a deeper market for Xero shares,” the company told shareholders on an online information page dedicated to explaining the move. “This would mean investors who want to buy or sell Xero shares can do so in greater volumes and more easily.

“The potential for inclusion in major ASX indices is expected to facilitate increased investment interest over time, and to place Xero on the radar of an expanded pool of potential investors interested in growth companies,” it said.

Additionally, in the medium-term, Xero expects that increased analyst and broker coverage will, in turn, increase the company's profile among a wider range of potential investors globally.

“The combination of these benefits is critical to delivering Xero’s long-term strategy to drive diversified global growth,” Xero said.

Xero previously said that the decision to consolidate its issued capital was made following an extensive strategic process which thoroughly canvassed all available options.

“While more than half of Xero’s people live and work in New Zealand, 80 per cent of our revenue now comes from outside New Zealand. Our strategy is to drive further growth in markets like UK, North America and Southeast Asia,” Drury said in November last year.

Indeed, as of late last year, Xero was making big inroads in the UK, where it claims to be the cloud accounting market leader, with subscribers up 54 per cent to 253,000.

Meanwhile, North American subscribers have grown to 110,000 while Xero has strengthened its partner channel.


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 AustraliaNew ZealandASXaccountingxeroNZX

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments