Megaport Secures AUD$308 Million in Retail Entitlement Offer at $14.30 Per Share with 105% Subscription Rate

Formation of Megaport’s AUD$827 Million Entitlement Offer

Megaport announced its entitlement offer on 3 June 2026 through an investor presentation titled "Creation of GPU Pool, New Contracts, and Entitlement Offer." The offer was structured as a fully underwritten 1 for 3.08 pro rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares, aiming to raise approximately AUD$827 million. This structure granted eligible shareholders the right to participate proportionally to their existing shareholdings, while the Underwriting agreement guaranteed the company would obtain the full capital irrespective of individual Shareholder participation.

The offer comprised an institutional component completed before the retail Offer Period, and the retail component, which has now officially closed successfully. The announcement on 2 July 2026 confirmed the retail tranche’s completion, marking the final phase before allotment and the start of normal trading of the new shares. The total raise of AUD$827 million is significant for an ASX-listed technology company and underscores Megaport’s strategic focus in AI infrastructure and software-defined networking.

Retail Segment Raises AUD$308 Million at $14.30 Per Share with 21.6 Million Shares Issued

The retail portion of the entitlement offer generated approximately AUD$308 million at a fixed price of AUD$14.30 per new share, resulting in the issuance of about 21.6 million new shares to eligible retail shareholders. The AUD$14.30 offer price was established when the entitlement offer was announced in June 2026, and all participating retail shareholders subscribed at this fixed price regardless of any fluctuations in the Market Price of Megaport’s existing shares during the offer period.

New shares issued through the retail entitlement offer will have equal rights with existing fully paid ordinary shares, granting new shareholders the same Dividend entitlements, voting rights, and other shareholder privileges as current holders. The company advised shareholders to verify their allocated share quantities before trading, noting that selling new shares prior to receiving a holding statement is at the shareholder’s own risk.

Retail Demand Surpassed Supply, Resulting in a 105% Take-Up Rate

A standout feature of the retail offer was the demand level. Megaport received valid applications from eligible retail shareholders totaling approximately AUD$323 million — exceeding the AUD$308 million available under the retail tranche. This equated to a take-up rate near 105%, demonstrating that retail shareholder demand outpaced supply. The strong subscription rate reflects meaningful backing from Megaport’s retail investors for the company’s strategic plans and capital allocation.

The Megaport board expressed gratitude to shareholders for their participation and ongoing support. While customary, these figures provide clear evidence of the positive reception from retail investors. Achieving a take-up rate above 100% was possible due to the inclusion of a top-up mechanism, allowing shareholders who fully subscribed to apply for additional shares through the Top Up Facility.

Top Up Facility Received AUD$77 Million in Additional Applications Prior to Scale-Back

The Retail Entitlement Offer incorporated a Top Up Facility, enabling eligible retail shareholders who took up their full entitlement to apply for up to 50% more shares from a pool not taken up by others. This mechanism allows shareholders to increase their stake while ensuring any shortfall is absorbed by engaged shareholders rather than the underwriter.

The Top Up Facility attracted about AUD$77 million in applications, contributing to the total AUD$323 million application pool. Approximately AUD$14 million of these applications required refunds due to demand exceeding available shares. Megaport confirmed that around AUD$246 million of core entitlements were taken up, with the remaining AUD$77 million coming from Top Up Facility applications, of which approximately AUD$63 million were fulfilled.

Equal 81% Scale-Back Applied to All Top Up Facility Applicants

Because Top Up Facility applications exceeded available shares, Megaport implemented a scale-back applied equally across all applicants. Each participant received about 81% of the additional shares they requested. This uniform approach ensured no individual retail applicant was favored, with all experiencing the same proportional reduction.

This scale-back resulted in full allocation of all shares available under the retail entitlement offer, an ideal outcome for the company as the underwriter did not need to cover any shortfall. Refunds related to scaled-back Top Up Facility applications will be promptly sent to retail shareholders following settlement.

Settlement Scheduled for 3 July, Allotment on 6 July, and Trading Begins 7 July 2026

Megaport has provided a timeline for the final steps: settlement of new shares under the retail entitlement offer will occur on Friday, 3 July 2026; allotment will follow on Monday, 6 July 2026; and normal trading is expected to start on Tuesday, 7 July 2026, pending ASX confirmation. All times are Sydney, Australia time. Megaport and joint lead managers reserve the right to amend any dates without notice, subject to laws and ASX Listing Rules.

Investors who participated and received scaled-back Top Up Facility allocations should expect refunds after settlement. The company advises against trading new shares before receiving holding statements, as this carries risk. The Offer Information Line remains open until 5:00pm Sydney time on Monday, 20 July 2026, for inquiries.

GPU Pool and New Contracts Strategy Driving the Capital Raise

The substantial capital raise is framed by Megaport’s June 2026 investor presentation titled "Creation of GPU Pool, New Contracts, and Entitlement Offer." Although the 2 July 2026 update confirming retail offer completion does not detail proceeds usage or specifics on the GPU Pool and new contracts, the presentation title indicates that Megaport’s ambitions in AI inference infrastructure are central to the capital raise. The company describes its Business as a "globally-distributed AI inference cloud" providing software-defined private compute, network, and storage services.

Megaport operates in over 1,100 enabled locations worldwide and partners with service providers, data centers, and systems integrators globally. Its network holds ISO/IEC 27001 certification. The company’s shift toward AI inference infrastructure and GPU-as-a-service offerings marks a strategic evolution from its core software-defined networking and interconnection services. Investors will likely watch how the AUD$827 million proceeds are allocated across the GPU Pool initiative and new contracts referenced in the June 2026 presentation.

Implications of Megaport’s AUD$827 Million Capital Raise on Growth Outlook

An AUD$827 million capital raise is significant for any ASX-listed tech firm. Megaport’s decision to pursue this scale of funding indicates management and the board foresee substantial near-term capital deployment opportunities. The fully underwritten nature of the offer suggests a desire for certainty of proceeds, typical when funding large infrastructure investments with defined timelines. The company has not provided specific guidance on expected returns or deployment schedules in this update.

The smooth completion of institutional and retail tranches, with retail take-up exceeding 100%, suggests positive market reception. However, immediate share price effects following retail offer completion were not publicly clear at the time of this report. Investors seeking detailed proceeds allocation should refer to Megaport’s 3 June 2026 investor presentation, which outlines the GPU Pool strategy, new contracts, and entitlement offer rationale.

Impact of Non-Renounceable Offer Structure on Retail Shareholder Options

The entitlement offer was non-renounceable, meaning eligible retail shareholders who did not participate could not sell their entitlements to others. Unlike renounceable offers, where shareholders can monetize rights on-market, this structure prevented value transfer from unexercised entitlements to non-participants.

The underwriting arrangement ensured any unexercised entitlements were sold through the underwriter, guaranteeing full capital receipt. The Top Up Facility partially offset the non-renounceable limitation by allowing participating shareholders to apply for shares from the pool left by non-participants, capturing some economic opportunity forfeited by non-participating shareholders. The 105% take-up rate indicates most eligible retail shareholders participated and sought additional shares via the Top Up Facility.

Upcoming Milestones for Megaport Investors After Retail Offer Completion

With the retail entitlement offer closed and successful, key upcoming dates for investors include settlement on 3 July 2026, allotment on 6 July 2026, and normal trading commencement on 7 July 2026. Participants with scaled-back Top Up Facility allocations should monitor communications from Megaport’s share registry for refunds and holding statements. The Offer Information Line will be available for queries through 20 July 2026.

Beyond procedural steps, investors will likely anticipate updates on Megaport’s GPU Pool initiative and new contracts referenced in the June 2026 presentation, which are central to the capital raise’s strategic rationale. The company has not provided timelines for further developments in this update. Future progress will be communicated through company updates and Investor relations materials on megaport.com and the company’s ASX disclosure page.