GDS Holdings Considers IPO for International Arm, Targets $500 Million

Hong Kong, China - February 28, 2023 - GDS Holdings Ltd. is exploring an initial public offering (IPO) of its international business arm, DayOne, in the United States, according to sources familiar with the matter. The IPO is expected to raise approximately $500 million.

DayOne operates data center facilities in Hong Kong and Southeast Asia. Sources indicate that the company is currently in discussions with banks regarding the IPO process. The IPO deliberations are ongoing and could potentially result in a successful offering later this year.

GDS shares experienced a significant surge following the Bloomberg News report on the potential IPO, jumping as much as 15% in Hong Kong. The company's market value currently stands at $6 billion.

This move comes amidst growing interest in US IPOs by Chinese data center companies. Yovole, another Chinese data center firm, is also reportedly considering a US IPO. Vnet Group Inc., based in Beijing, is already listed on the New York Stock Exchange.

In December, GDS raised $1.2 billion for DayOne from investors such as SoftBank Vision Fund and Citadel's CEO, Ken Griffin. The transaction reduced GDS's stake in DayOne to approximately 35.6%.

Key Points:

* GDS Holdings is exploring an IPO for its international arm, DayOne.
* The IPO could raise $500 million and is expected later this year.
* DayOne operates data centers in Hong Kong and Southeast Asia.
* Chinese data center companies are increasingly considering US IPOs.
* GDS shares surged after news of the potential IPO.