Megaport Ltd (ASX:MP1) has completed a fully underwritten institutional placement raising A$200 million to help fund its phased acquisition of bare-metal provider Latitude.sh and accelerate its network expansion in India.
The company will issue about 14 million new fully paid ordinary shares at A$14.30 each, a 6.5% discount to the last close of A$15.30 on Monday, November 10, 2025. Megaport said the offer drew strong demand from existing holders and new investors, with bids well in excess of the placement amount. On a best-endeavours basis, all eligible institutions that applied for up to their pro-rata entitlement received full allocations.
Trading in Megaport shares resumed on the ASX prior to market open today. Settlement of the new shares is expected on Friday, November 14, 2025, with allotment and normal trading from Monday, November 17, 2025. The new shares will rank equally with existing ordinary shares.
Chief executive Michael Reid said the transaction and network build would position Megaport’s automated software platform “where networks and compute converge to connect critical workloads”, adding that the company is “optimally positioned to scale and grow at the heart of the hybrid cloud and AI-driven future.”
Share purchase plan up to A$20 million
Megaport will also run a non-underwritten share purchase plan (SPP) for eligible Australian and New Zealand shareholders, targeting up to A$20 million. Eligible investors can apply for up to A$30,000 in SPP shares, free of brokerage and transaction costs, with any scale-back to follow the policy set out in the SPP booklet.
SPP shares will be priced at the lower of the placement price (A$14.30) and a 2.5% discount to the five-day VWAP up to and including the SPP closing date, rounded to the nearest cent. The SPP record date is 7:00pm (Sydney time) on Monday, November 10, 2025.
Proceeds from the SPP will be used for general corporate and working capital purposes.
Market reaction
In early trading today, Megaport shares fell 2.7% to A$14.89 after touching an intraday high of A$16.99, following the announcement.
Morgan Stanley analysts, led by Chris Boulus, said the combination “makes strategic sense,” but cautioned that bare-metal businesses are capital-intensive, face obsolescence risk and see returns pressured by competition.