GDS Holdings, a leading Chinese high-performance data center operator and provider, debuted on the Nasdaq Stock Market on Wednesday, seeking financing to support China’s growing Internet Data Center (IDC) industry.
GDS has listed on the Nasdaq Global Market, where U.S. tech giants Apple, Amazon and Facebook and China’s Baidu and JD.com are traded. For its IPO, GDS will sell 19.25 million American Depositary Shares with the price set at 10 U.S. dollars per share. The company is expected to raise about 200 million U.S. dollars from investors.
It is the highest financing volume for a Chinese tech company pursuing an IPO in the United States this year, according to Yeeli Hua Zheng, China Chief Representative with Nasdaq.
GDS’s facilities are strategically located in China’s primary economic hubs such as Beijing, Shanghai, Chengdu and Shenzhen, where demand for high-performance data center services is concentrated.
GDS chairman and CEO Huang Wei said the company will use the money to invest in improving and expanding facilities in the cities to offer high-quality services as demand for big data and cloud computing continues to grow among tech and financial companies.
The company’s share price stood at 10.41 U.S. dollars per share, up 4.1 percent as the market closed on Wednesday.
China’s high-performance IDC market is expected to grow from 1.5 billion U.S. dollars in 2015 to about 2.4 billion U.S. dollars in 2018, according to industry research.