- GDS Holdings (GDS, Financial) launches C-REIT IPO on the Shanghai Stock Exchange with regulator approval.
- The data center assets have an appraised valuation of approximately RMB 1,933 million.
- GDS will retain 20% of the C-REIT units, with 50% pre-placed with cornerstone investors.
GDS Holdings Limited (GDS), a leading provider of high-performance data centers in China, has announced the launch of an initial public offering (IPO) for its China REIT (C-REIT) on the Shanghai Stock Exchange. The China Securities Regulatory Commission (CSRC) has approved the offering, marking a significant step for GDS in monetizing its data center assets.
The transaction involves the sale of 100% equity interests in a project company holding stabilized data center assets to the newly formed C-REIT, with these underlying assets appraised at approximately RMB 1,933 million. GDS will subscribe to 20% of the C-REIT units, while the remaining 80% will be held by institutional and retail investors.
In an impressive display of confidence from the financial community, 50% of the C-REIT units have been pre-placed with cornerstone investors, who have agreed to lock-up periods ranging from one to three years. The remaining 30% of units will be offered through an institutional bookbuilding process and a retail public offering.
The final offering price of the C-REIT units will be determined after the institutional bookbuilding process, which is expected to conclude in about a week. The transaction is anticipated to close within the next few weeks, contingent on meeting the required closing conditions.
