Market Overview

Nasdaq-Listed GDS Set To Raise $1.6B In Hong Kong Secondary Offering: Report

Nasdaq-Listed GDS Set To Raise $1.6B In Hong Kong Secondary Offering: Report

Chinese internet data service provider GDS Holdings Ltd ADR (NASDAQ: GDS) is set to raise $1.67 billion from its second listing in Hong Kong, according to Bloomberg.

What Happened: The issue price for the second listing is expected to be announced on Tuesday before the U.S. market opens for trading. GDS is expected to price about 160 million shares at HKD 80.88 per share, as per Bloomberg. The shares could begin trading from Nov. 2 on the Stock Exchange of Hong Kong.

Since each ADR is equivalent to 8 ordinary shares of GDS, the HKD 80.88 IPO price represents a 3% discount on Monday’s after-hours ADR price of $86.10.

Mobilized funds would be reportedly deployed to enhance data center performances and innovate new technologies of data center designs.

Why Does It Matter: The US-China conflict is driving many Chinese companies to opt for the second listing in Hong Kong.

Alibaba Group Holdings (NYSE: BABA) raised $12.9 billion from its Hong Kong IPO last November. In June, Chinese e-commerce company Inc’s (NASDAQ: JD) public issue in the Asian financial hub generated $3.9 billion.  

Price Action: GDS shares traded slightly higher at $86.10 in the after-hours session in New York on Monday.


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