Megaport raises $50 million in under 24 hours

Megaport raises $50 million in under 24 hours

It has taken Megaport (ASX: MP1) no time at all to raise $50 million in capital to further accelerate its expansion.

The placement announced on Wednesday morning will result in 12.5 million fully paid ordinary shares in Megaport.

The issue price of the new shares is $4 per share, representing a discount of 4.8 per cent to Megaport's closing price of $4.20 on 12 March 2019.

The company says it is undertaking the raise to accelerate expansion to new locations and markets, to undertake capacity upgrades, fund innovation and develop new technology.

Founder and chairman Bevan Slattery will also offer up to 5 million shares to institutional, experienced, sophisticated and professional investors via an underwritten secondary offering. Once the offer has concluded Slattery will hold 16.3 per cent of Megaport's shares.

"We are very pleased with the continued support of our investors as Megaport cements its first mover advantage through rapid expansion and investments in its go to market engine," says CEO Vincent English.

"The capital raising will enable Megaport 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. These use cases will drive further utilisation of the Megaport Software Defined Network and will create greater value for Megaport customers and partners alike."

The company will also offer each eligible shareholder in Australia and New Zealand the ability to apply and subscribe for up to $15,000 of new shares up to a total cap of $10 million via a share purchase plan (SPP).

The SPP offer documentation will be made available on the ASX around 21 March, 2019.

The company continued its growth during 1H19, resulting in a healthy amount of revenue.

The company's first half revenue was $15.2 million, an increase of 72 per cent from the same period ending 31 December 2017.

Total monthly recurring revenue was also up during December 2019 by $1.1 million to $2.7 million.

At the end of the first half Megaport had 1,277 customers across 386 data centres in 82 cities.

Of these data centres, 78 were located in the Asia Pacific region, 209 in North America, and 99 in Europe.

The company hopes to have a presence in 300 different locations by mid-2019.

The company's best results came from North America where revenue increased by 80 per cent during 1H19.

Monthly recurring revenue in North America was described as a "major growth milestone" by Megaport, up from $0.55 million in June 2018 to $1 million in December 2018.

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