GDS Holdings Ltd. (NASDAQ:GDS), a Chinese data center company, saw its stock surge 5.14% in the intraday trading session on Wednesday, driven by reports that the company is considering listing its international subsidiary, DayOne, on a US stock exchange.
According to reports citing unnamed sources, GDS is exploring the possibility of taking DayOne public in an initial public offering (IPO) aimed at raising $500 million. DayOne holds GDS' data center operations outside of mainland China, with a portfolio that includes approximately 480MW of data center capacity in service and under construction across sites in Hong Kong, Singapore, Malaysia, Indonesia, and Japan.
The potential listing of DayOne is seen as a positive development for GDS, as it could provide a significant cash infusion to support the company's growth and expansion plans. GDS had previously raised $1.2 billion for DayOne in a private funding round in December of last year, attracting investors such as SoftBank Vision Fund and Citadel Chief Executive Officer Ken Griffin.
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