Megaport to list on ASX and raise $25 million
- 23 November, 2015 14:28
Software-based elastic connectivity provider, Megaport has lodged its prospectus as it prepares to raise $25 million and list on the Australian Stock Exchange (ASX).
The company expects to begin trading shares on the ASX on December 17.
It aspires to raise $25 million to help complete the construction of its North American and European networks.
At the $1.25 offer price, Megaport will have a market capitalisation of $87.5 million on completion of the offer, and will use proceeds to complete the construction of the North American and European networks, operate and maintain those networks, hire additional sales professionals and evaluate new growth opportunities.
The offer is fully underwritten by Morgans Corporate Limited.
Megaport CEO, Denver Maddux, said that the Initial Public Offer (IPO) of Megaport and planned ASX listing represented the next step in its growth plans.
Since its inception in January 2014, Megaport has operations across Australia, Singapore, Hong Kong and New Zealand, boasting more than 200 active customers and operating in 34 data centres.
Some of its top partners include Amazon AWS Technology, Microsoft Azure ExpressRoute and Google Cloud Interconnection.
“To achieve our vision we plan to extend the platform deeper into existing markets and expand into new markets, particularly key markets within North America, Europe, and Asia. The capital raising under the IPO helps the business accelerate those plans," Maddux said.
In 2016, Megaport plans to expand into 45 data centres in North America and Europe in key markets including New York, Los Angeles, Dallas, Seattle, San Francisco Bay Area, Toronto, London, Dublin, Amsterdam, and Stockholm.
Megaport was founded in 2013 by its executive Chairman, Bevan Slattery.
It developed a software defined networking (SDN) platform that enables customers to provision secure, dedicated, and highly scalable circuits (elastic interconnects) between their network and other networks, connected to the Megaport Fabric.
Customers can provision elastic interconnects for as long as a year and as short as one day, as slow as one megabit per second or as fast as 100 gigabits per second.