GDS Announces the Launch of an Initial Public Offering for its C-REIT on the Shanghai Stock Exchange

Rhea-AI Summary

GDS Holdings (NASDAQ: GDS), a leading Chinese data center operator, has received approval from Chinese regulators to launch a C-REIT IPO on the Shanghai Stock Exchange. The transaction involves selling 100% equity in a project company holding stabilized data center assets to a newly formed C-REIT.

The underlying assets are valued at approximately RMB 1,933 million. GDS will retain 20% of the C-REIT units, while 50% has been pre-placed with cornerstone investors with 1-3 year lock-up periods. The remaining 30% will be offered through institutional bookbuilding and retail public offering. The transaction is expected to close within weeks, pending final pricing and conditions.

Positive

• Asset monetization opportunity through C-REIT structure
• Strong institutional investor interest with 50% pre-placement
• Lock-up commitments of 1-3 years from cornerstone investors indicate long-term confidence
• Significant asset valuation of RMB 1,933 million

Negative

• Dilution of ownership as GDS will retain only 20% of the C-REIT units
• Final offering price still undetermined, creating pricing uncertainty
• Transaction subject to closing conditions which could delay or affect completion

News Market Reaction

+3.34%

1 alert

+3.34% News Effect

On the day this news was published, GDS gained 3.34%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SHANGHAI, China, June 26, 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 China Securities Regulatory Commission (“CSRC”) and Shanghai Stock Exchange have approved the registration and launch of an initial public offering (“IPO”) for its China REIT (“C-REIT”).

The transaction involves the sale by GDS of 100% equity interest in a project company which holds stabilized data center assets to a newly formed C-REIT. The C-REIT will fund the acquisition through an IPO on the Shanghai Stock Exchange. GDS will subscribe for 20% of the units to be issued by the C-REIT, with the remaining 80% to be subscribed by institutional and retail investors. 50% of the units have already been pre-placed with cornerstone institutional investors, with lock-up commitments of between one to three years. The remaining 30% will be offered through an institutional bookbuilding process and a retail public offering.

The appraised valuation of the underlying data center assets to be acquired by the C-REIT, as per the valuation report contained in the offering memorandum, is approximately RMB 1,933 million. The final offering price for the C-REIT units will be determined following completion of the institutional bookbuilding, which is expected in approximately one week’s time.

The transaction is expected to close within the next few weeks and is subject to certain closing conditions.

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 value of GDS Holdings' data center assets being transferred to the C-REIT?

The data center assets being transferred to the C-REIT have an appraised valuation of approximately RMB 1,933 million.

How much of the GDS C-REIT IPO has been pre-placed with cornerstone investors?

50% of the C-REIT units have been pre-placed with cornerstone investors, who have committed to lock-up periods of one to three years.

What percentage of the C-REIT will GDS Holdings retain after the IPO?

GDS Holdings will retain 20% of the C-REIT units, while the remaining 80% will be held by institutional and retail investors.

When is the GDS C-REIT IPO expected to close?

The IPO is expected to close within a few weeks after the institutional bookbuilding process, which should complete in approximately one week.

How will the remaining 30% of GDS C-REIT units be distributed?

The remaining 30% of the C-REIT units will be distributed through an institutional bookbuilding process and a retail public offering.