Xero Heads for Record High After Capital Raise: Wellington Mover
Shares in New Zealand’s Xero Ltd. headed for a record high after the online accounting software company said it raised NZ$180 million ($150 million) to fund global expansion.
Xero sold 9.92 million shares at NZ$18.15 to a range of U.S. and New Zealand investors, the Wellington-based company said in a statement today. The stock jumped as much as 11 percent to NZ$19.90, the highest since listing in June 2007.
Over the last two months, Xero has held partner conferences in Australia, the U.S. and the U.K. and is seeing “acceleration in the acceptance and adoption of its products,” the company said in the statement. The capital raising will “support continued global growth,” it said.
Xero shares climbed NZ$1.74, or 9.7 percent, to NZ$19.69 at 10:57 a.m. in Wellington. The benchmark NZSE50 Index (NZSE50FG) was down 0.1 percent at 4,737.
Xero expects operating revenue to exceed NZ$30.3 million for the six months through Sept. 30 this year, an 84 percent rise from the same period last year, according to the statement. In May, the company said its full-year loss widened to NZ$14.4 million while revenue doubled to NZ$39 million.
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