- GDS Holdings (GDS, Financial) successfully closed its public offering, raising $141.6 million from 5,980,000 American Depositary Shares (ADSs) at $24.50 each.
- The company completed a private offering of $550 million in 2.25% convertible senior notes due 2032, including a $50 million overallotment option.
- Proceeds from these offerings will support general corporate purposes, working capital, and refinancing existing debt, including potential repurchases of convertible bonds due 2029.
GDS Holdings Limited (GDS), a prominent developer of high-performance data centers in China, has announced the successful closing of its public offering, raising approximately $141.6 million. The offering included 5,980,000 American Depositary Shares (ADSs) priced at $24.50 per share, following the full exercise of the underwriters' option to purchase an additional 780,000 ADSs.
In addition to the ADS offering, GDS has completed a private offering of $550 million in 2.25% convertible senior notes set to mature in 2032. This total amount includes the $50 million from the fully exercised overallotment option by the initial purchasers.
The funds raised from these offerings aim to bolster the company's financial flexibility. GDS plans to utilize the proceeds for general corporate purposes, working capital needs, and to refinance existing indebtedness, which may include potential future repurchases or redemptions of its convertible bonds due 2029.
This dual approach of combining ADS and notes offerings underscores strong demand from institutional investors. The transactions were jointly managed by major financial institutions including J.P. Morgan, BofA Securities, Morgan Stanley, and UBS Investment Bank. This indicates market confidence in GDS's strategy and growth potential within China's burgeoning data center market.
