GDS Holdings is reportedly considering a U.S. initial public offering (IPO) for its international subsidiary, DayOne, which could potentially raise around $500 million. This information comes from sources familiar with the matter, indicating that GDS may seek to list DayOne, which operates data centers in Hong Kong and Southeast Asia, within this year.

Previously known as GDS International, DayOne is currently in discussions with banks regarding the IPO process, although these negotiations are ongoing and may not ultimately result in a deal. GDS has not provided any comments on this matter.

Following the news of the potential IPO, GDS’s shares surged by up to 15% in Hong Kong, reaching their highest point since July 2022. This increase has contributed to a remarkable gain of over 420% in GDS’s stock over the last year, leading to a total market valuation of approximately $6 billion.

Additionally, Bloomberg has noted that other Chinese data center companies, such as Yovole, are also contemplating U.S. IPOs. Vnet Group, another Beijing-based data center firm, is already listed on the New York Stock Exchange, with its American depositary receipts experiencing a 160% rise over the past two months.

In December, GDS secured $1.2 billion in funding for DayOne from investors, including the SoftBank Vision Fund and Citadel CEO Ken Griffin, which resulted in GDS retaining a 35.6% stake in the subsidiary.

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