GDS Holdings announced its C-REIT IPO, pricing units at RMB 3.00, raising RMB 2,400 million in gross proceeds.
Quiver AI Summary
GDS Holdings Limited announced the final pricing for its initial public offering (IPO) of its China REIT (C-REIT) on the Shanghai Stock Exchange, set at RMB 3.00 per unit, after the offering was oversubscribed by 166 times. The C-REIT will issue 800 million units, raising gross proceeds of RMB 2.4 billion. The offering reflects an implied enterprise value to EBITDA ratio of 16.9 times and a dividend yield of 5.2 percent based on projected cash flows. GDS will sell a 100% equity interest in a subsidiary holding stabilized data center assets for about RMB 2.319 billion, expecting net cash proceeds of RMB 2.111 billion after transaction costs. GDS will reinvest RMB 480 million to acquire a 20% stake in the C-REIT and continue managing the data center assets for an annual fee of approximately RMB 5 million.
Potential Positives
- The C-REIT IPO was 166 times over-subscribed, indicating strong investor demand and confidence in the company.
- GDS is set to receive RMB 2,111 million in net cash proceeds from the sale of a project company holding stabilized data center assets.
- The final offering price provides an implied dividend yield per unit of 5.2%, which may attract income-focused investors.
- GDS will maintain a revenue stream of approximately RMB 5 million annually from managing the underlying data center assets, ensuring ongoing operational income.
Potential Negatives
- The final offering price of RMB 3.00 per unit may indicate a weaker demand than anticipated, despite being 166 times over-subscribed, as it may not reflect a premium valuation compared to market expectations.
- The implied EV / EBITDA ratio of 16.9 times could raise concerns among investors regarding the valuation and financial prospects of the C-REIT, potentially impacting future investment sentiment.
- Although GDS will generate cash proceeds from the IPO, the de-consolidation of approximately RMB 62 million of net debt and other liabilities may suggest underlying financial pressures or challenges in managing liabilities effectively.
FAQ
What is the final offering price for GDS's C-REIT IPO?
The final offering price for GDS's C-REIT IPO is RMB 3.00 per unit.
How many units will the C-REIT issue?
The C-REIT will issue a total of 800,000,000 units.
How much are the gross proceeds expected to be?
The gross proceeds to be received by the C-REIT are RMB 2,400 million.
What is the projected dividend yield per unit?
The implied dividend yield per unit is 5.2 percent based on projected cash flow.
What percentage of the C-REIT will GDS reinvest in?
GDS will reinvest in 20% of the units issued by the C-REIT.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GDS Hedge Fund Activity
We have seen 72 institutional investors add shares of $GDS stock to their portfolio, and 80 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SACHEM HEAD CAPITAL MANAGEMENT LP added 4,215,000 shares (+inf%) to their portfolio in Q1 2025, for an estimated $106,765,950
- BAMCO INC /NY/ removed 3,605,821 shares (-54.0%) from their portfolio in Q1 2025, for an estimated $91,335,445
- ASPEX MANAGEMENT (HK) LTD removed 1,916,851 shares (-38.9%) from their portfolio in Q1 2025, for an estimated $48,553,835
- FARALLON CAPITAL MANAGEMENT LLC removed 1,531,133 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $38,783,598
- TRIATA CAPITAL LTD removed 1,449,421 shares (-83.0%) from their portfolio in Q1 2025, for an estimated $36,713,833
- AMERICAN CENTURY COMPANIES INC removed 1,400,512 shares (-60.3%) from their portfolio in Q1 2025, for an estimated $35,474,968
- MORGAN STANLEY added 1,025,951 shares (+63.8%) to their portfolio in Q1 2025, for an estimated $25,987,338
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$GDS Analyst Ratings
Wall Street analysts have issued reports on $GDS in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Daiwa issued a "Buy" rating on 05/28/2025
- Citigroup issued a "Outperform" rating on 03/20/2025
- JMP Securities issued a "Outperform" rating on 01/27/2025
To track analyst ratings and price targets for $GDS, check out Quiver Quantitative's $GDS forecast page.
Full Release
SHANGHAI, China, July 02, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced that the final offering price for its previously announced China REIT (“C-REIT”) initial public offering (“IPO”) on the Shanghai Stock Exchange is RMB 3.00 per unit. The final offering price was determined following completion of the institutional bookbuilding, which was 166 times over-subscribed. The C-REIT will issue 800,000,000 units in total, representing 100% of units in issue on completion of the IPO. The gross proceeds to be received by the C-REIT is RMB 2,400 million.
At the final offering price, the implied EV / EBITDA, based on the projected EBITDA for 2026 for the C-REIT contained in the offering memorandum of RMB 141.8 million, is 16.9 times. At the final offering price, the implied dividend yield per unit, based on the projected cash flow available for distribution for 2026 contained in the offering memorandum of RMB 124.8 million, is 5.2 per cent.
GDS will enter into an agreement to sell to the C-REIT a 100% equity interest in a project company which holds stabilized data center assets for a total enterprise value of approximately RMB 2,319 million. On completion of the sale, GDS will receive total net cash proceeds of approximately RMB 2,111 million, comprising equity consideration and dividend of existing cash, net of tax and certain other transaction costs. In addition, GDS will de-consolidate approximately RMB 62 million of net debt and other liabilities. GDS will reinvest RMB 480 million to subscribe for 20% of the units issued by the C-REIT in the IPO.
GDS will continue to operate and manage the underlying data center assets under a services agreement with the project company transferred to the C-REIT, pursuant to which GDS will receive recurring annual fee income of approximately RMB 5 million.
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located in and around primary economic hubs where demand for high-performance data center services is concentrated. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company offers co-location and a suite of value-added services, including managed hybrid cloud services through direct private connection to leading public clouds, managed network services, and, where required, the resale of public cloud services. The Company has a 24-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a non-controlling 35.6% equity interest in DayOne Data Centers Limited which develops and operates data centers in International markets.
For investor and media inquiries, please contact:
GDS Holdings Limited
Laura Chen
Phone: +86 (21) 2029-2203
Email:
[email protected]
Piacente Financial Communications
Ross Warner
Phone: +86 (10) 6508-0677
Email:
[email protected]
Brandi Piacente
Phone: +1 (212) 481-2050
Email:
[email protected]
GDS Holdings Limited