Accounting Software Company Xero Has Raised More Capital To Fund Growth

Xero Australia Managing Director Chris Ridd / Xero

New Zealand accounting software firm Xero has gone into a trading halt as it prepares to announce the outcome of its latest capital raising round.

Xero is listed on the New Zealand Exchange and Australian Securities Exchange.

Shares ceased trading just before 3pm Sydney time, with the company requesting a trading halt of up to 48 hours.

A Xero spokesperson said details of the new funding round – expected to help it capitalise on opportunities and fund further growth – would be released on Monday.

The company last week reported that it had $NZ55 million ($A48 million) cash on hand and forecast an 84% growth in operating revenues to more than $NZ30 million for the first half of the 2014 financial year.

Xero raised $NZ60 million from US investors Valar Ventures and Matrix Capital Management last November.

Shares closed yesterday at $16 on the ASX and are now worth $15.72.

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