GDS Announces the Final Offering Price for its C-REIT Initial Public Offering on the Shanghai Stock Exchange

Rhea-AI Summary

GDS Holdings (NASDAQ: GDS), a leading Chinese data center operator, has announced the final pricing for its C-REIT IPO on the Shanghai Stock Exchange at RMB 3.00 per unit. The offering, which was 166 times oversubscribed, will issue 800 million units to raise RMB 2.4 billion in gross proceeds.

The company will sell a 100% equity stake in a project company holding stabilized data center assets to the C-REIT for RMB 2,319 million. GDS will receive net proceeds of RMB 2,111 million and will reinvest RMB 480 million to maintain a 20% ownership in the C-REIT. The C-REIT's projected dividend yield for 2026 is 5.2%, with an EV/EBITDA multiple of 16.9x.

Positive

• Strong investor demand with 166x oversubscription rate
• Significant cash proceeds of RMB 2,111 million to be received
• Attractive 5.2% projected dividend yield for 2026
• De-consolidation of RMB 62 million in debt and liabilities
• Recurring annual fee income of RMB 5 million from services agreement

Negative

• 20% of IPO proceeds (RMB 480 million) required for reinvestment in C-REIT units

Insights

REIT Investment Specialist

GDS's C-REIT IPO secures RMB 2.4B with 166x oversubscription, generating RMB 2.1B cash for GDS while maintaining management control.

GDS Holdings has successfully priced its China REIT IPO at RMB 3.00 per unit, with extraordinary demand demonstrated by a 166 times oversubscription in the institutional bookbuilding phase. The C-REIT will issue 800 million units, generating gross proceeds of RMB 2,400 million.

The transaction's financial metrics reveal compelling valuations, with an implied EV/EBITDA multiple of 16.9x based on projected 2026 EBITDA of RMB 141.8 million. Investors can expect a projected dividend yield of 5.2% based on 2026 cash flow available for distribution of RMB 124.8 million.

This transaction represents a sophisticated capital recycling strategy for GDS. The company will sell data center assets to the C-REIT at an enterprise value of approximately RMB 2,319 million, generating net cash proceeds of RMB 2,111 million while maintaining operational control through a services agreement. GDS will reinvest RMB 480 million to retain a 20% ownership stake in the C-REIT, ensuring alignment of interests with other unitholders.

The structure creates multiple revenue streams for GDS: immediate cash proceeds, ongoing management fees of approximately RMB 5 million annually, and participation in future C-REIT distributions. Additionally, GDS will deconsolidate RMB 62 million of debt and liabilities, strengthening its balance sheet while retaining operational involvement with the assets.

SHANGHAI, China, July 02, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced that the final offering price for its previously announced China REIT (“C-REIT”) initial public offering (“IPO”) on the Shanghai Stock Exchange is RMB 3.00 per unit. The final offering price was determined following completion of the institutional bookbuilding, which was 166 times over-subscribed. The C-REIT will issue 800,000,000 units in total, representing 100% of units in issue on completion of the IPO. The gross proceeds to be received by the C-REIT is RMB 2,400 million.

At the final offering price, the implied EV / EBITDA, based on the projected EBITDA for 2026 for the C-REIT contained in the offering memorandum of RMB 141.8 million, is 16.9 times. At the final offering price, the implied dividend yield per unit, based on the projected cash flow available for distribution for 2026 contained in the offering memorandum of RMB 124.8 million, is 5.2 per cent.

GDS will enter into an agreement to sell to the C-REIT a 100% equity interest in a project company which holds stabilized data center assets for a total enterprise value of approximately RMB 2,319 million. On completion of the sale, GDS will receive total net cash proceeds of approximately RMB 2,111 million, comprising equity consideration and dividend of existing cash, net of tax and certain other transaction costs. In addition, GDS will de-consolidate approximately RMB 62 million of net debt and other liabilities. GDS will reinvest RMB 480 million to subscribe for 20% of the units issued by the C-REIT in the IPO.

GDS will continue to operate and manage the underlying data center assets under a services agreement with the project company transferred to the C-REIT, pursuant to which GDS will receive recurring annual fee income of approximately RMB 5 million.

About GDS Holdings Limited

GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located in and around primary economic hubs where demand for high-performance data center services is concentrated. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company offers co-location and a suite of value-added services, including managed hybrid cloud services through direct private connection to leading public clouds, managed network services, and, where required, the resale of public cloud services. The Company has a 24-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a non-controlling 35.6% equity interest in DayOne Data Centers Limited which develops and operates data centers in International markets.

For investor and media inquiries, please contact:

GDS Holdings Limited
Laura Chen
Phone: +86 (21) 2029-2203
Email: ir@gds-services.com

Piacente Financial Communications
Ross Warner
Phone: +86 (10) 6508-0677
Email: GDS@tpg-ir.com

Brandi Piacente
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com

GDS Holdings Limited

FAQ

What is the final offering price for GDS Holdings' C-REIT IPO?

The final offering price for GDS Holdings' C-REIT IPO is RMB 3.00 per unit, with a total issuance of 800 million units raising RMB 2.4 billion in gross proceeds.

How much will GDS Holdings receive from the C-REIT transaction?

GDS Holdings will receive net proceeds of RMB 2,111 million from selling its data center assets to the C-REIT, comprising equity consideration and dividend of existing cash, net of tax and transaction costs.

What is the projected dividend yield for GDS Holdings' C-REIT in 2026?

The projected dividend yield for GDS Holdings' C-REIT in 2026 is 5.2%, based on projected cash flow available for distribution of RMB 124.8 million.

What ownership stake will GDS maintain in the C-REIT after the IPO?

GDS Holdings will maintain a 20% ownership stake in the C-REIT by reinvesting RMB 480 million to subscribe for units in the IPO.

How oversubscribed was the GDS Holdings C-REIT IPO?

The GDS Holdings C-REIT IPO was 166 times oversubscribed following the completion of institutional bookbuilding.