GDS, developer and operator of “high-performance” data centers in China, has launched its Hong Kong initial public offering (IPO). The company will be listed under the stock code ‘9698.’
The IPO initially comprises 8,000,000 new shares for the Hong Kong IPO and 152,000,000 new shares for the international offering, representing approximately 5.0% and 95.0% of the total number of shares in the offering, respectively, subject to re-allocation and over-allotment.
GDS plans to use the net proceeds received from the IPO primarily for expanding its platform of “high-performance” data centers through strategic sourcing across markets. It is also meant for innovating and developing new technologies related to data center design, construction and operations, as well as other general corporate purposes.
Hong Kong Stock Exchange
The IPO forms part of their global offering of 160,000,000 new Class A ordinary shares and listing of its Class A ordinary shares on the Main Board of The Stock Exchange of Hong Kong. Upon listing in Hong Kong, the Class A ordinary shares listed on the Hong Kong Stock Exchange will be fully fungible with the Class A ordinary shares represented by ADSs listed on Nasdaq.
The offer price for the Hong Kong IPO will be no more than HK$86.00 per share. The offer price for the international offering tranche of this IPO may be set at a level higher than the Hong Kong offer price. GDS is expected to set the international offer price by October 27, 2020 Hong Kong time by making reference to, among other factors, the closing price of the ADSs on Nasdaq on the last U.S. trading day on or before October 26, 2020 and investor demand during the marketing process.
The final Hong Kong offer price will be set at the lower of the final international offer price and the maximum offer price of HK$86.00 per share. Shares will be traded in board lots of 100 shares each.