Beijing-based data center operator GDS Holdings Ltd. is mulling a US IPO for its GDS International business, targeting to raise approximately $500 million, according to informed sources. GDSI operates data centers in Hong Kong and Southeast Asia. The company has reportedly initiated discussions with banks regarding the IPO. GDS declined to comment.
Following Bloomberg's IPO report, GDS shares surged by 15% in Hong Kong, reaching their highest point since July 2022. The recent rally has pushed GDS's gains over the past year to over 425%, valuing the company at $6 billion.
In December, Bloomberg reported that another Chinese data center firm, Yovole, was considering a US IPO. Beijing-based Vnet Group Inc. has already listed in New York, with American depositary receipts soaring over 160% in the past two months alone.
GDS raised $1.2 billion for GDSI in December from investors such as SoftBank Vision Fund and Citadel CEO Ken Griffin, retaining a stake of approximately 35.6% in the unit. Other GDSI investors include Coatue Management, Hillhouse Investment, and Boyu Capital.