GDS Holdings announced CSRC and Shanghai Stock Exchange approval for its C-REIT IPO, involving stabilizing data center asset transactions.
Quiver AI Summary
GDS Holdings Limited, a prominent developer and operator of high-performance data centers in China, announced the approval from the China Securities Regulatory Commission and Shanghai Stock Exchange for an initial public offering (IPO) of its China REIT (C-REIT). This IPO involves selling a 100% equity interest in a project company that owns stabilized data center assets to the new C-REIT, which will raise funds through the IPO. GDS will hold a 20% stake in the C-REIT, with 50% of the units pre-placed with cornerstone institutional investors. The total appraised value of the assets to be acquired is about RMB 1,933 million, and the final offering price will be set post-institutional bookbuilding, expected to conclude within a week. The transaction is likely to close in the coming weeks, pending specific conditions.
Potential Positives
- Approval from the China Securities Regulatory Commission and Shanghai Stock Exchange for the registration and launch of an initial public offering (IPO) for its China REIT (C-REIT) demonstrates regulatory confidence in GDS Holdings and its business model.
- The C-REIT allowing GDS to offload stabilized data center assets while retaining a 20% interest shows strategic capital management and alignment with investor interests.
- Pre-placement of 50% of the C-REIT units with cornerstone institutional investors reflects strong initial demand and confidence in the asset valuation of approximately RMB 1,933 million.
- The expected transaction closing in the coming weeks indicates a swift execution of the capital-raising strategy, potentially enhancing liquidity and investment capacity for GDS Holdings.
Potential Negatives
- The initial public offering (IPO) for the China REIT may indicate a need for capital injection, suggesting potential financial pressures on the company.
- The requirement for significant lock-up periods from cornerstone institutional investors may limit immediate liquidity and could reflect concerns about the C-REIT's attractiveness post-IPO.
- The valuation of approximately RMB 1,933 million for the data center assets may not meet investor expectations, potentially impacting market perception and future fundraising efforts.
FAQ
What is the purpose of GDS Holdings' C-REIT IPO?
The C-REIT IPO facilitates the sale of stabilized data center assets and funding through the Shanghai Stock Exchange.
How much equity interest will GDS Holdings retain in the C-REIT?
GDS Holdings will retain a 20% equity interest in the C-REIT following the IPO.
What is the estimated valuation of the data center assets for the C-REIT?
The appraised valuation of the underlying data center assets is approximately RMB 1,933 million.
When is the expected closing date for the C-REIT transaction?
The transaction is expected to close within a few weeks, pending certain closing conditions.
Who are the main customers of GDS Holdings?
GDS Holdings' customers include hyperscale cloud providers, large internet companies, financial institutions, and telecommunications carriers.
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 74 institutional investors add shares of $GDS stock to their portfolio, and 101 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
- PORTOLAN CAPITAL MANAGEMENT, LLC removed 1,302,533 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $30,948,184
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, June 26, 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 China Securities Regulatory Commission (“CSRC”) and Shanghai Stock Exchange have approved the registration and launch of an initial public offering (“IPO”) for its China REIT (“C-REIT”).
The transaction involves the sale by GDS of 100% equity interest in a project company which holds stabilized data center assets to a newly formed C-REIT. The C-REIT will fund the acquisition through an IPO on the Shanghai Stock Exchange. GDS will subscribe for 20% of the units to be issued by the C-REIT, with the remaining 80% to be subscribed by institutional and retail investors. 50% of the units have already been pre-placed with cornerstone institutional investors, with lock-up commitments of between one to three years. The remaining 30% will be offered through an institutional bookbuilding process and a retail public offering.
The appraised valuation of the underlying data center assets to be acquired by the C-REIT, as per the valuation report contained in the offering memorandum, is approximately RMB 1,933 million. The final offering price for the C-REIT units will be determined following completion of the institutional bookbuilding, which is expected in approximately one week’s time.
The transaction is expected to close within the next few weeks and is subject to certain closing conditions.
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
