China’s leading communication infrastructure services provider Guodong Group said on January 29 that it has raked in 1.1 billion yuan ($170 million) in a pre-IPO round to advance national new infrastructure.
Guodong Group attracted new investors including American investment bank Morgan Stanley, Chinese Ping An Insurance’s investment arm Ping An Ventures, CICC Capital, CITIC Group’s brokerage arm CITIC Securities, and state-backed Guolian Group in the round, the investee said on WeChat.
Returning backers SPDBI International Holdings, an offshore investment bank of Shanghai Pudong Development Bank, and Changjiang Capital’s Changjiang Wonderbay Fund also participated. SPDBI had exclusively invested in Guodong’s Series A round in 2016, while Wonderbay Fund had backed Guodong’s Series B in 2017.
With the fresh proceeds, Guodong will aim to spruce up its 5G network-driven communications tower, as well as speed up the acquisitions of private-owned tower assets.
Guodong, which started operations in 1997 and incorporated in 2008, is a private-owned company aimed at providing a gamut of IT infrastructure solutions and applications for the communication industry.
With presences across 31 provinces in the country, Guodong runs three line businesses — communication infrastructure, integrated services, and equipment manufacturing.
The company delivers integrated services by leveraging new-generation technologies such as the internet of things (IoT) and cloud-computing. Besides, its Shanghai-based subsidiary Guodong Data Technology has rolled out novel data centers spanning across cities like Beijing, Shenzhen, and Guangzhou, according to the company website.
Per its dated press releases in January 2021, Guodong had foraged partnerships with Central China’s Hanzhong city and Southwest China’s Yunnan province, respectively, to co-work on facilitating new infrastructure strategy comprising 5G network, IoT, AI, industrial internet.
China called for China called for a strategy of new infrastructure in April last year to focus on 5G networks, data centres and artificial intelligence, among others.