Australia's Megaport raises $308M in retail offer

• The retail component of Megaport's underwritten entitlement offer closed after raising approximately $308 million.
• Following the announcement, Megaport shares declined 6.79% to close at $19.36.
• The capital raising forms part of a broader strategy to fund new artificial intelligence infrastructure contracts.

Megaport (ASX:MP1) has closed its retail entitlement offer, raising approximately $308 million at $14.30 per share.

The retail tranche follows the earlier completion of the institutional component, which secured approximately $518 million from wholesale investors.

The company received valid applications representing a retail take-up rate of approximately 105%.

Approximately $14 million will be refunded to applicants after the company scaled back oversubscribed applications within its top-up facility.

Megaport stated that the raised capital will fund recent artificial intelligence contracts and seed its new infrastructure investments.

Following the announcement, the Megaport share price was down at $19.36.

The broader capital management programme follows the company securing four new infrastructure contracts valued at approximately $458.9 million.