Xero Shares Hit Record High After $158 Million Capital Raising Round

Xero Australia Managing Director Chris Ridd / Xero

Shares in cloud accounting software firm Xero have jumped 11.3% on the ASX to an all-time high after it raised $NZ180 million ($A158 million) of new capital from US and New Zealand investors.

Xero shares were trading at $A17.50 on the ASX this morning.

Xero is also listed on the New Zealand Exchange, where its share price is up 10% from $NZ17.95 when trading was halted on Friday, pending the announcement.

The latest capital raising round saw 9.92 million shares – representing 8% of total shares on issue after the raise – issued at $NZ18.15 ($A15.95) per share.

More than 80% was raised from US investors, including existing shareholders Matrix Capital Management and Valar Ventures.

Including this capital raising round, Xero now has $NZ230 million on hand. The company said today that the capital would go towards “building a world-class team in the US market and [supporting] continued global growth”.

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