GDS Holdings Sells DayOne Shares for $385 Million, Achieving 6.5x Return
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
Source: Benzinga
- Equity Buyback Transaction: GDS Holdings agreed to repurchase ordinary shares from DayOne Data Centers for $385 million, with the buyback price matching DayOne's recent convertible preferred share issue price, demonstrating the company's agility in capital management.
- Significant Investment Return: This buyback allows GDS to recover nearly 95% of its invested capital, achieving a return of approximately 6.5 times, indicating successful management and capital efficiency in high-risk investments.
- Future Strategic Deployment: GDS plans to redeploy the proceeds from the buyback into new projects within its core China operations, aiming to generate strong returns as it expands its data center platform and further solidifies its market position.
- Financial Outlook Reaffirmed: On November 19, GDS reiterated its fiscal 2025 total revenue guidance of 11.29 billion to 11.59 billion yuan, adjusted EBITDA guidance of 5.19 billion to 5.39 billion yuan, and capital expenditure of 2.7 billion yuan, reflecting the company's confidence in future growth.
Analyst Views on GDS
Wall Street analysts forecast GDS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GDS is 43.76 USD with a low forecast of 6.29 USD and a high forecast of 67.12 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
8 Buy
0 Hold
0 Sell
Strong Buy
Current: 46.510
Low
6.29
Averages
43.76
High
67.12
Current: 46.510
Low
6.29
Averages
43.76
High
67.12
About GDS
GDS Holdings Ltd is a holding company mainly engaged in the development and operation of high-performance data centers. The Company’s main businesses include the planning and sourcing of new data centers, developing facilities, as well as providing customers with colocation and managed services, which include managed hosting services and managed cloud services. The Company also provides certain other services, including consulting services. The colocation services primarily comprise the provision of critical facilities space, customer-available power, racks and cooling. The suite of managed hosting services includes business continuity and disaster recovery solutions, network management services, data storage services, system security services, operating system services, database services and server middleware services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
