<article>China-based data center provider <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=GDS+Holdings+" target="_blank">GDS Holdings Ltd</a> is going public in the US seeking to raise more or less $260 million in its initial public offering (IPO) on <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Nasdaq" target="_blank">Nasdaq</a>.</article>

China-based data center provider <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=GDS+Holdings+" target="_blank">GDS Holdings Ltd</a> is going public in the US seeking to raise more or less $260 million in its initial public offering (IPO) on <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Nasdaq" target="_blank">Nasdaq</a>.
GDS recently filed for an IPO with the US Securities and Exchange Commission, indicating its plans to offer 19.3 million American depositary shares (ADS) priced at $12 to $14 per share.
&#8220;We estimate that we will receive net proceeds of approximately $226.7 million from this offering, or approximately $261.6 million if the underwriters exercise their option to purchase additional ADSs from us in full, assuming an initial public offering price of $13.00 per ADS,&#8221; GDS said in its statement.
GDS has facilities in primary economic hubs in China, and also in Hong Kong. As a carrier and cloud neutral tech firm, it claims to enable its customers to connect to all major PRC telecommunications carriers, and to access a number of the largest PRC cloud service providers, whom it hosts in its facilities.
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GDS currently operates its data centers in Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, and one in Hong Kong.
Credit Suisse Securities (USA) LLC, JP Morgan Securities LLC, Citigroup Global Markets Inc, RBC Capital Markets LLC, and China Renaissance Securities (Hong Kong) Limited, are acting as joint book-running managers of the offering and as representatives of the underwriters.
Formed in 2001 through the merger of Italy-based CA&amp;G Elettronica, and UK-based Emco Electronics ― GDS now has 370 customers consists predominantly of large internet companies, financial institutions, telecommunications, IT service providers, and large domestic private sector and multinational corporations. It offers colocation and managed services, including a managed cloud value proposition.
As of September 2016, GDS had a total area of service at 48,822 sqm, and 37,194 sqm under construction. The firm also holds 49,038 sqm of area for future development.
The company disclosed its plans to use the net proceeds of the offering to repay certain portions of its indebtedness at $21 million, to develop and acquire new data centers at $180 million, for the payment of preference dividends to holders of its preferred shares at $11.4 million, and to pay preference dividends to holders of its preferred shares and for general corporate purposes.
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According to GDS, the market for high-performance data center services in China is experiencing strong growth, but noted there is a relative scarcity of high-performance data center capacity, as a result of the strong demand and the challenges of sourcing, developing and operating new facilities that meet the required standard.
GDS cited 451 Research, which reported the China market is expected to increase from $1.5 billion in 2015 to $2.4 billion in 2018, representing a compound annual growth rate, or CAGR of 16.6 per cent. Over the same period, the high-performance carrier-neutral data center services market in China is expected to grow with a higher CAGR of 20.5 per cent.
The independent research firm tagged GDS last month as the largest service provider in the high-performance carrier-neutral data center services market in China, with 24.9 per cent market share.
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China-based data center GDS seeks $260m IPO in US

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China-based data center GDS seeks $260m IPO in US

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