Why is Megaport (ASX: MP1) trading down ~8% today?
This morning Megaport (MP1) announced that they had completed the retail component of its entitlement offer, raising $308mn through the issuing of 21.6mn shares at $14.30, significantly blow todays price – The offer was part of a broader $827mn capital raising.
The allocation included a top-up facility enabling shareholders who fully subscribed, to apply for additional shares, with strong demand resulting in total applications of $323mn. Positively the company was forced to scale back, allocating 81% of these top-up allocations, refunding $14mn.
The initial sharp selloff this morning is likely to be down to some profit taking from the capital raise which came hot on the heels of sharp selloff in the “AI Trade” overnight.
- We are neutral towards MP1 around $19 after its stellar run in 2026.
