Cloud comms provider Megaport raising $60m for network expansion
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Just-bigger-than-small-cap ‘network as a Service’ provider Megaport (ASX:MP1) will raise up to $60 million in a placement to high-net worth investors and a share purchase plan as it seeks to expand its reach.
The technology company, which provides connectivity for its customers to any cloud service in its ecosystem, wants to expand its network into new locations and markets, upgrade its technology and pour money into innovation for new products.
Institutional, sophisticated, experienced and professional investors — all different things — will stump up the $50 million, while a share purchase plan will allow retail shareholders to buy up to 15,000 new shares each, until $10 million is raised.
The share purchase plan opens March 21 and closes April 26, while Morgans and RBC Capital Markets — analysts who believe the Megaport share price could hit $5.50 — are the lead managers and underwriters to the big placement.
The news comes a month after Megaport released its half-year financials, which showed a steep 72 per cent increase in revenue to $15.1 million, but a 24 per cent increase in loss, up to $15.7m.
Vincent English, Megaport CEO, told investors to expect “strong momentum” in the second half, but declined to provide any full-year financial guidance.