GDS Holdings Ltd (NASDAQ:GDS), a Chinese data center operator, witnessed a significant pre-market soar of 11.88% on Tuesday. This surge in the stock price was fueled by reports that the company is exploring a potential initial public offering (IPO) for its international subsidiary, DayOne.
According to the news, GDS is considering a public listing for DayOne, which holds the company's data center assets outside mainland China. The anticipated IPO could raise around $500 million and is targeted to take place as early as this year.
Investors reacted positively to this development, as it could unlock value for GDS and provide additional capital for DayOne's growth initiatives. Last December, GDS had raised $1.2 billion for DayOne from investors, including SoftBank Vision Fund and Citadel's CEO Ken Griffin.
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