Data center operator GDS Holdings Ltd. is considering a secondary listing in Singapore in addition to US and Hong Kong.
Secondary listings are usually an attempt to access new markets to raise capital. Also, a stock exchange’s disclosure requirements are usually less extensive for secondary listings.
According to people familiar with the matter, which was reported by Bloomberg, GDS has held initial talks with potential advisers on a plan to list its shares on the Singapore exchange, said the people, who asked not to be identified as the information is private. It hasn’t decided whether it will raise any capital through the listing, the people said.
Founded in 2001, GDS develops and operates data centers in China including in Beijing, Hong Kong, Shanghai and Chengdu, according to its website. The company started its overseas expansion plan last year with plans for facilities in Southeast Asia.
What it means
If this listing goes ahead, this would be the first of its kind for a data center company globally.
Considerations are at an early stage and the Shanghai-based firm could decide not to proceed with a listing in the Southeast Asian country, the people said. A representative for GDS didn’t immediately respond to requests for comment.
GDS has been trading in New York since 2016 when it raised about $200 million in an initial public offering. In 2020, GDS raised about HK$14.9 billion ($1.9 billion) in Hong Kong’s sixth-largest first-time share sale that year, according to data compiled by Bloomberg.
