Shares of GDS Holdings Ltd (NASDAQ:GDS), a Chinese data center operator, surged 6.03% in Monday's intraday trading session, outperforming the broader market on news that the company is considering a public listing of its international subsidiary DayOne.
According to reports, GDS is exploring a potential initial public offering (IPO) for DayOne, which holds the company's data center assets outside mainland China. The IPO could raise around $500 million and is targeted to take place as early as this year.
This development has been viewed positively by investors, 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.