Megaport shares fall despite completing retail entitlement offer

The news: Shares in Megaport tumbled in afternoon trade despite the enterprise tech completing the retail component of its entitlement offer announced last month.

Shares fell 6.5% to $19.41 at 1:16pm AEST.

The context: This follows the company successfully raising $309 million through the retail tranche, which opened on 11 June. The raise forms the retail component of its fully underwritten $827.3 million entitlement offer announced on 3 June, with proceeds to be used to fund high-performance Nvidia GPUs and establish an on-demand GPU pool.

Megaport stated that it received valid applications from eligible retail shareholders totalling approximately $323 million, representing a take-up rate of 105%.