DCI Indonesia goes public, data center shares soar 25% on first day

DCI Indonesia (DCII), one of the country’s leading data center operators, went public on the Indonesia Stock Exchange (IDX) on Wednesday, 6th January 2021.

DCII released 357 million new shares in its IPO with an offering price of $0.030 (Rp 420) per share. This is equivalent to 15% of the company’s issued capital and paid-up capital. 

Upon its debut on the IDX, DCII’s shares rose 25% to $0.038 (Rp 525) per share.

CEO Toto Sugiri said that the decision to go public is part of the company’s growth strategy. As the global demand for cloud technology continues to rise, the hyperscale data center industry in Indonesia is expected to benefit greatly from this boom.

Toto Sugiri also announced that in the first quarter of 2021, the company will operate four more data centers with a total capacity of 37 Megawatt (MW) in Indonesia to meet the market demand.

“The data center market is estimated to have a total capacity of 72.5 MW by the end of 2020 and according to the projections of Structure Research it will continue to grow with a CAGR of 22.3% over the next five years,” he pointed out.

Established in 2011 and operating since 2013, DCII is the first Tier IV certified data center provider in Southeast Asia.

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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Is cloud hosting right for your business?

Hosting websites and applications on the cloud is becoming a popular choice for businesses, as it is believed to offer greater flexibility and speed in scalability as well as reliable uptime to keep your services live even if a server goes down.

But is it right for your business? Register now and join industry experts and peers for our Inside Asia digital event to get the answers!

Get involved in the conversation and connect with your peers on LinkedIn and Facebook using #WMediaEvent!