Xero, the cloud accounting software firm, expects to make more losses in its push to become a global player and may raise more cash to pay for those plans, according to its prospectus for a secondary listing on the ASX.
The Wellington-based company lodged its prospectus for admission on the official list of the Australian Securities Exchange as a secondary listing, but doesn't plan to raise fresh capital at once.
Xero said it expects to make more losses and may seek more funds to pay for its global aspirations.
'Xero will be very much focusing on establishing and then growing its business,' the prospectus said.
'Accordingly, it expects to make further losses and have negative cash flow in at least the short term.'
The company abandoned its goal to reach profitability last year, instead pursuing a growth strategy that's seen first-half revenue more than double to more than $16.7 million in the six months ended September 30.
Chairman Sam Knowles said the ASX listing will help facilitate Australian investors in the firm, where interest in the business as an investment has grown with its expanding customer base.
'Australia has over 1200 accounting partners for Xero countrywide and has recently surpassed New Zealand as the fastest growing region for Xero internationally,' Mr Knowles said.
'As a consequence, the interest in Xero as an investment opportunity has also increased.'
Xero shares were unchanged at $5.35 on Monday and have surged 94 per cent this year.
The stock is closely held, with 58 shareholders of the 2,924 owning 82 per cent. Founder Rod Drury holds 21 per cent and director Craig Winkler a further 20 per cent.