Megaport Limited has launched a Share Purchase Plan (SPP) targeting up to A$20 million, following a successful A$200 million institutional placement. Eligible shareholders in Australia and New Zealand can acquire shares at a discount, supporting the company’s recent acquisition and expansion plans.
- SPP aims to raise up to A$20 million, non-underwritten
- Shares offered at A$14.30 or 2.5% discount to VWAP
- Eligible shareholders can apply up to A$30,000
- Funds support Latitude.sh acquisition and India expansion
- SPP closes 4 December 2025, shares allotted 11 December
Megaport’s Capital Raise Continues
Megaport Limited (ASX, MP1) has officially opened its Share Purchase Plan (SPP), inviting eligible shareholders in Australia and New Zealand to participate in a capital raising initiative designed to complement its recent institutional placement. This SPP follows the successful completion of a A$200 million placement announced earlier this month, which was primarily aimed at funding the upfront cash consideration for Megaport’s acquisition of Latitude.sh, as well as supporting its strategic expansion in India.
Details of the Share Purchase Plan
The SPP is set to raise up to A$20 million and is not underwritten, meaning the final amount raised will depend on shareholder participation. Eligible shareholders as of 7, 00pm Sydney time on 10 November 2025, with registered addresses in Australia or New Zealand, can apply for additional shares valued between A$1,000 and A$30,000. The shares will be issued at the lower of A$14.30, the price paid by institutional investors in the placement, or a 2.5% discount to the five-day volume weighted average price (VWAP) up to the closing date of the SPP on 4 December 2025.
Strategic Use of Funds
Funds raised through the SPP will be allocated for general corporate and working capital purposes, reinforcing the company’s financial position following the Latitude.sh acquisition. This acquisition, announced alongside the placement, is a key part of Megaport’s strategy to enhance its cloud networking services and expand its footprint, particularly in the growing Indian market. The additional capital will also help cover one-off transaction costs and bolster cash liquidity.
Shareholder Participation and Terms
Megaport has structured the SPP to be accessible and cost-effective for shareholders, with no brokerage or transaction fees involved. The offer is non-renounceable, meaning shareholders cannot transfer their rights to purchase shares under the plan. In the event of oversubscription, Megaport retains the discretion to scale back applications or increase the amount raised. Shares issued under the SPP will rank equally with existing shares and are expected to commence trading on the ASX from 12 December 2025.
Looking Ahead
With the SPP now open, Megaport is inviting shareholders to consider this opportunity to increase their investment at a potentially discounted price. The company’s recent capital raising activities underscore its commitment to growth through strategic acquisitions and market expansion. Investors will be watching closely to see the level of shareholder uptake and how the additional funds will accelerate Megaport’s ambitions in cloud networking.
Bottom Line?
Megaport’s latest capital raise signals confidence in its growth trajectory but leaves investors watching for subscription levels and integration progress.
Questions in the middle?
- Will Megaport’s SPP reach its A$20 million target or face scale-backs?
- How will the Latitude.sh acquisition impact Megaport’s revenue and market position?
- What are the risks if Megaport’s share price falls below the SPP issue price before allotment?