GDS Holdings’ Hong Kong listing raises US$1.67 billion

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GDS Holdings Limited (NASDAQ: GDS) raised US$1.67 billion in its second Hong Kong listing, after pricing shares at $86.04 each.

Based on the ratio of eight Shares per Nasdaq-listed American depositary share (ADS), the offering price translates to approximately $83.49 per ADS.

As Capacity reported last week, the Hong Kong public offering forms part of the global offering of 160,000,000 new Class A ordinary shares.

With the share pricing announced on 27 October, the stock is set to begin trading on 2 November, subject to approval from The Stock Exchange of Hong Kong Limited.

GDS has granted the international underwriters an over-allotment option, exercisable from October 27, 2020 until 30 days thereafter, to require the Company to issue up to an additional 24,000,000 new Shares at the Offer Price.

The $1.67 billion raised to date is prior to underwriting feeds and offering expenses being deducted, but data centre developer and operator GDS has said the profits will be reinvested in its portfolio to expand “through strategic sourcing across markets”. It will also use some of the funds to “innovate and develop new technologies related to data centre design, construction and operations”.

Two years ago, GDS partnered with China Unicom, China Telecom and SDIC as part of a non-binding agreement to jointly develop data centres in selected upcoming markets in China.

In September, GDS extended a legally-binding offer to acquire 100% of the equity interests in target companies which own a major data centre in the Shunyi district of Beijing. It is expected to be fully utilised in 2022.

J.P. Morgan, BofA Securities, CICC and Haitong International were named as the joint sponsors, joint global coordinators, joint bookrunners and joint lead managers for the Global Offering.