GDS Stock Rises 2% on Full Exercise of Share Purchase in Offering

The Chinese company has been pushing its expansion and acquiring additional data center facilities. This week, it closes a secondary public offering to raise expansion capital.
Capitalwatch StaffDec 09,2019,22:00

Shares in GDS Holdings Ltd. (Nasdaq: GDS) gained 2% on Monday after the company, a data center company in China, said the underwriters in its secondary public offering have exercised the option to acquire additional shares.

In a statement today, the Shanghai-based GDS said it has thus raised $276.7 million in its offering, first announced last week, after deducting underwriting discounts and commissions.

The company will use $190 million of the proceeds for the acquisition of Lanting (Beijing) Information Science and Technology Co. Ltd. and its subsidiary, Lanting Xuntong (Beijing) Science and Technology Co. Ltd., according to its official statement.

The rest of the capital will be used for investment in other land, building and data center acquisitions, GDS added.

Underwriting the offering are J.P. Morgan Securities LLC, RBC Capital Markets LLC, BofA Securities Inc. and Haitong International Securities Co. Ltd.

One of the major shareholders in GDS and an active investor in the communications, media and technology space, STT GDC Pte Ltd., may act as a key investor in the deal. GDS said in a filing on Friday that STT has indicated interest in purchasing up to 2.3 million shares in the offering.

GDS has sold 6.3 million American depositary shares at $45.50 apiece. On Monday, the stock in the data center operator closed at $47.14 per ADS.