GDS News & Events

GDS Holdings has entered into definitive agreements with DayOne Data Centers, a Singapore-headquartered hyperscale data center platform in which the company holds a minority equity investment, pursuant to which DayOne will repurchase ordinary shares of DayOne from GDS to the value of $385M. The share repurchase price per ordinary share is the same as the price for DayOne's recently announced Series C convertible preferred share new issue of over $2.0B. The share repurchase will enable GDS to recycle approximately 95% of its principal invested in DayOne at a nearly 6.5 times multiple of money. The value of GDS's remaining equity interest in DayOne implied by the Series C new issue price is over $2.2B, equivalent to $11.18 per GDS American Depositary Share. GDS currently intends to reallocate the proceeds of the share repurchase to invest in new business opportunities in its core business in China.

Raymond James raised the firm's price target on GDS Holdings to $55 from $53 and keeps a Strong Buy rating on the shares following Q3 results. For longer-term investors who can weather the mix-shift outside of mainland China, Raymond James believes the future growth should be more stable and have substantially less risk, the firm told investors in a research note. The firm added that the gating factor is GDS Holdings customers' ability to access the appropriate number of GPUs to fill up data center space.

Reaffirms FY25 Adjusted EBITDA view RMB 5.190B-RMB 5.390B. Reaffirms capex guidance of approximately RMB 2.700B.