Megaport leads ASX 200 gains after raising $518m from institutional offer

The news: Megaport paced the ASX 200 gains in early trade after its shares recommenced trading on Friday, following the successful completion of the institutional component of its $827.3 million entitlement offer.

Shares rallied 13% to $18.77 at 11:06am AEST.

The context: Megaport has raised $518 million from the institutional component of the offer, which will result in the issue of approximately 36.2 million new shares, with trading expected to commence on 15 June.

The enterprise tech company said the institutional tranche attracted strong demand from eligible shareholders, achieving a take-up rate of approximately 99%.

This comes after the company secured four new AI infrastructure contracts worth approximately $458.9 million on Wednesday, launching the entitlement offer to fund the capital expenditure required to deliver the projects and establish a GPU pool.