In less than a month since confirming their US initial public offering, Chindata Group Holdings successfully raised US$540 million.
Despite original reports that the Chinese data center operator was targeting US$400 million, Chindata surpassed this by pricing its shares at the top end of the targeted range.
As the fifth largest Chinese IPO listed on the Nasdaq Global Select Market, the Bain Capital-backed hyperscale data center provider sold 40 million American depositary shares at US$13.50 per share.
Chindata Group provides business solutions such as data centers, network and IT value-added services in major countries and regions in Asia Pacific emerging markets like Malaysia where the data center provider owns Bridge Data Centres’ that operate facilities in the country.
Earlier this year, South Korea’s SK Holdings reportedly paid US$300 million for an 8.9% share in the world’s first hyperscale data center operator Chindata Group.
Its listing comes amid rising US-China tensions, which has forced a number of companies to reconsider their listings, including the world’s second largest maker of flash memory chips, Kioxia Holdings Corporation, who planned on a US$3.2 billion initial public offering on the Tokyo Stock Exchange.
With the USA positioned as a difficult place to do business for Chinese organisations, giants like Tencent and ByteDance have been pushed to select Singapore as a place to invest and target the lucrative Southeast Asia market.
Reuters reports that the US IPO market has seen a strong rebound after grinding to a halt six months ago due to the economic uncertainty created by the COVID-19 pandemic. Technology listings have been at the forefront of this recovery.
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