Shares of GDS Holdings Limited, the Chinese data center operator, soared 14.39% during Tuesday's intraday trading session. The stock surge came after media reports revealed the company's plans for a potential $500 million US initial public offering (IPO) of its ex-China business unit, GDSI, in 2025.
According to Bloomberg News, GDS is considering spinning off its non-China operations into a separate entity called GDSI and listing it on a US stock exchange. The proposed IPO could raise around $500 million, providing GDS with a fresh source of capital to fund its future growth initiatives.
Investors welcomed the news, as the move is expected to unlock value from GDS's international operations and enhance the company's overall valuation. The prospect of a successful US IPO for GDSI contributed significantly to the substantial intraday stock price rally witnessed on Tuesday.
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