Chindata Group is reportedly preparing an initial public offering (IPO) in the United States of America with a target of raising US$400 million, reports Reuters.
According to unnamed sources close to the Bain Capital-backed hyperscale data center operator, the firm plans to be publicly listed as early as the third quarter of 2020.
As a result, the market value of Chindata is forecast to reach US$3 to US$4 billion as long as the IPO proceeds.
The decision to list in the US as opposed to Hong Kong was made because fellow Chinese data center owners 21Vianet and GDS Holdings saw success in the NASDAQ stock exchange, with a 209% and 106% respective jump in performance in the last year. 21Vianet also raised US$353 million last week in a follow-on offering.
The fifth largest Chinese IPO in the US this year
With a target of US$400 million, the listing in New York is expected to be the fifth largest Chinese IPO this year, suggests Refinitive data. The data also identifies Chindata as the 20th Chinese company to list in the US in 2020, despite threats of delisting and geopolitical tensions between the US and China.
So far this year, even with the economically devastating COVID-19 pandemic, the 19 current Chinese IPOs have raised US$6.96 billion, which is more than double the US$3.42 billion raised in 2019.
This Chindata IPO will be filed confidentially by submitting a registration with the US Securities and Exchange Commission.
Earlier this year, South Korea’s SK Holdings reportedly paid US$300 million for an 8.9% share in Chindata Group. And in 2019, Bain Capital acquired the Group with US$570 million in strategic financing, valuing Chindata at US$3.1 billion.
Chindata Group also merged with Bridge Data Centres to continue hyperscale expansion plans into China, Malaysia and India.
Bain Capital and Chindata declined to comment on the IPO.
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