Chindata publishes terms of $500m IPO

Chindata publishes terms of $500m IPO

25 September 2020 | Natalie Bannerman

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Chindata Group Holdings (CGH) has detailed the terms of its $540 million US initial public offering (IPO).

CGH plans to sell 40 million American depositary shares (ADSs) for $11.50 to $13.50 each, according to filing with the US Securities and Exchange Commission on Wednesday 23 September.

The company plans to raise an additional $135 million in a private placement to Country Garden Holdings and Shimao Group Holdings running at the same time as the IPO.

The news comes as investors interest in the Bain Capital backed Asian data centre operator has grown due to the prevalence of remote working and cloud-based services have maximised its value proposition.

Chindata reproted revenues of $119 million (810.6 million Yuan) in H1 of 2020, compared with $32.4 million (221.5 million Yuan) for the same period in 2019. Its net loss fell to $8.6 million (59.4 million Yuan) in the first half of 2020 from $13.8 million (94.9 million Yuan) in 2019.

At the mid marketed range, Chindata would have an estimated market value of $4.5 billion with a top marketed range of approximately $4.9 billion.

In a registration statement in support of its IPO Chindata confirmed that Morgan Stanley and Citigroup Global Markets are acting as joint bookrunners for the offering, with UBS Securities and China Renaissance Securities as underwriters.