Under the placement, the company will issue 12,500,000 fully paid ordinary shares in Megaport at a price of $4.00 per Share, representing a discount of 4.8% to Megaport’s closing price of $4.20 per Share on 12 March 2019.
The funds raised from the placement will be used to expand into key regions, markets, and locations. Further, the funds will be used in innovating new services and capabilities. According to Megaport’s Chief Executive Officer, Vincent English, this Capital Raising will allow the company to further invest in its innovation engine and support the growth of its service provider ecosystem to deliver new product capabilities that unlock advanced IT use cases.
According to Mr. English, the management of the company is very pleased with the continued support of its investors as Megaport cements its first mover advantage through rapid expansion and investments in its go to market engine. He further informed that, as a global business transforming the way cloud services are consumed, Megaport has attracted a sophisticated and diverse investor base with a clear vision for the future of data networking.
As announced on 13 March 2019, Megaport is also going to conduct a Share Purchase Plan under which each eligible shareholder in Australia and New Zealand will be allowed to apply and subscribe for up to $15,000 of new Shares, up to a total cap of $10 million. It is expected that the SPP offer will close on 26 April 2019.
In the first half of FY 2019, the company reported revenue of $15.2 Mn which was 72 percent higher than the revenue reported in the previous corresponding period (pcp). The total Monthly Recurring Revenue (MRR) for the month of December 2018 was $2.7 million which is $1.1 million or 70% higher than the month of December 2017. During the half year period, the company made significant investments in its sales and go-to-market engine. Further, the company expanded its footprint to new data centres and integrating with more cloud onramps.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $4.00, down by -4.762% during the day’s trade with a market capitalisation of ~$499.87 million as on 14 March 2019. The counter opened the day at $4.090 and reached the day’s high of $4.100 and touched a day’s low of $3.960 with a daily volume of ~ 1,788,158. The stock has provided a year till date return of 12.30% & also posted returns of 19.66%, 10.24% & 5.53% over the past six months, three & one-months period respectively. It had a 52-week high price of $4.560 and touched 52 weeks low of $3.030, with an average volume of ~236,684.
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