Chinese hyperscale data center operator Chindata confirms public offering in USA

Following reports last week, Chindata Group has confirmed on 9 September 2020 it will publicly file an initial public offering in the United States of America.

The number of American Depositary Shares and price range of the offering has not been determined, but it is speculated that the carrier-neutral hyperscale data center solution provider in Asia Pacific will look to raise US$400 million.

Morgan Stanley & Co. LLC and Citigroup Global Markets Inc. will act as joint bookrunners when Chindata Group goes live on The Nasdaq Global Select Market under the ticker symbol ‘CD’.

The fifth largest Chinese IPO in the US this year

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.

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 public offering will be filed 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.

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Chinese hyperscale data center operator Chindata targets $400m in US IPO, despite political tensions

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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SK Holdings pays $300m for 8.9% in data center operator Chindata Group

South Korea’s SK Holdings has reportedly paid US$300 million for an 8.9% share in the world’s first hyperscale data center operator Chindata Group.

The deal valued the data center provider, which was acquired by Bain Capital in 2019, at US$3.1 billion.

SK Holdings, the parent company of SK Group, owns six data centers in South Korea, while Chindata Group has multiple interconnected large-scale campuses serving global clients in China.

After merging with Bridge Data Centres last year, Chindata Group is also expanding into Malaysia with two hyperscale data centers in Cyberjaya and a new facility in the financial and telecom hub of Mumbai, India.

Chindata Group’s vision is to power its next-generation hyperscale data centers using 100% renewable energy.

“We diligently develop our hyperscale data centers at strategic locations where energy, connectivity and clients’ business demands intersect. In this way, we could help customers realize their business strategy together with the long-term goal of ‘go green’,” said Alex Ju, the Founder and CEO of Chindata Group.

Chindata Group was ranked in first place by Greenpeace in their Clean Cloud 2020 report and achieved the Hyperscale Innovation award at the DataCloud Awards 2019.

“We are dedicated to providing more cost-effective and resilient data center services for human development, and empowering emerging countries,” added Mr. Ju.

The acquisition between SK Holdings and Chindata Group is expected to close the third quarter of 2020.

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