Megaport completes $518m institutional entitlement offer

The Megaport Ltd (ASX: MP1) share price is in focus today after the company announced it has successfully completed the institutional component of its A$827.3 million entitlement offer, raising about A$518 million and attracting around 99% take-up from eligible institutional shareholders.

What did Megaport report?

• Raised gross proceeds of approximately A$518 million from the Institutional Entitlement Offer
• Issued around 36.2 million new fully paid ordinary shares at A$14.30 per share
• 99% take-up rate among eligible institutional shareholders
• The full entitlement offer (institutional and retail) aims to raise A$827.3 million in total
• Retail Entitlement Offer expected to raise approximately A$309 million

What else do investors need to know?

Megaport’s entitlement offer is part of the company’s broader capital management strategy, supporting its global growth plans and strategic combination with the Latitude.sh platform. The newly raised funds will help strengthen Megaport’s balance sheet and invest in the expansion of its AI inference cloud capabilities across more than 1,100 data centres in 31 countries.

The institutional offer saw nearly all eligible shareholders take part, with surplus demand covering the small unallocated portion. The retail offer, which follows at the same offer price and ratio, opens on 11 June 2026 for eligible retail shareholders in Australia and New Zealand.

What’s next for Megaport?

Megaport plans to proceed with the retail offer phase, giving retail shareholders the same chance to invest at the institutional offer price. Funds raised are expected to drive the company’s strategic ambitions, including further scaling its cloud and AI infrastructure offering and strengthening its position in global connectivity.

Eligible retail shareholders can apply for additional new shares if there’s a shortfall, subject to scale-back at the company’s discretion. Normal trading for new institutional shares begins 15 June 2026, while retail shares start trading 7 July 2026.

Megaport share price snapshot

Over the past 12 months, Megaport share have risen 20%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.

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The post Megaport completes $518m institutional entitlement offer appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.