DayOne Data Centers (DayOne), a Singapore based data center operator, is reportedly considering delaying its planned US initial public offering (IPO) or reducing the size of the share sale amid growing volatility in the data center sector. The company was previously considering raising US$ 5 billion through the IPO, potentially in the fourth quarter, with a targeted valuation of approximately US$ 20 billion.
According to a report from Bloomberg, the company has been assessing market conditions while waiting for an opportune window to launch the listing. One option under consideration is to postpone the IPO until market sentiment improves.
Alternatively, DayOne could proceed with a smaller offering targeting between US$ 2.5 billion and US$ 3 billion, approximately half its original fundraising target. Backed by investors including Coatue and Hillhouse, DayOne continues to engage with prospective investors and remains keen to proceed with the listing as soon as market conditions permit, the people said.
DayOne had filed a Form F-1 registration statement with the U.S. Securities and Exchange Commission for its proposed IPO of ADSs on Nasdaq under the ticker “DODC” in early October. Morgan Stanley, J.P. Morgan, BofA Securities and Citigroup were appointed as underwriters, while the offering size and price range had yet to be determined.
So far, Day One itself has not made any official statement about any postponement. Discussions are still ongoing and DayOne could still proceed with the offering in the coming weeks, depending on market conditions. The latest considerations highlight the challenges facing data center operators seeking to tap public markets amid heightened volatility and shifting investor sentiment towards the sector.