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.