Bain-Backed Data Center Provider Chindata Raises $540M in US IPO

Julia Fioretti (Bloomberg) -- Chindata Group Holdings Ltd. has raised $540 million in its U.S. initial public offering after pricing at the top of a marketed range, according to people familiar with the matter.

The Chinese data center operator, which is backed by private equity firm Bain Capital, sold 40 million American depositary shares at $13.50 each, the people said, asking not to be identified as the information is private. Chindata had set a price range of $11.50-$13.50 apiece.

An external representative for the company declined to comment.

Chindata’s IPO comes at a time when investors are showing enthusiasm for companies providing cloud computing and other services needed for employees working from home. In Hong Kong, Ming Yuan Cloud Group Holdings Ltd., a cloud-computing company for property developers, proved a hit with institutional investors who put in orders for 45 times the amount of stock made available to them.

Tech stocks have staged a rebound globally since March lows as buyers flocked to companies seen to be benefiting from social distancing and remote work. Chindata is joining rivals GDS Holdings Ltd. and 21Vianet Group Inc. in listing in the U.S.

The pricing values Chindata at about $4.9 billion, based on the outstanding shares listed in the prospectus.

Related:US-Listed Data Center Giant GDS Weighs Hong Kong Secondary Share Sale

Chindata had revenues of 810.6 million yuan ($119 million) in the first half of 2020, compared with 221.5 million yuan during the same period a year earlier. Its net loss decreased to 59.4 million yuan in the first half of 2020 from 94.9 million a year earlier.

The offering is being led by Morgan Stanley and Citigroup Inc. The company’s depositary shares, each representing two ordinary Class A shares, are expected to trade on the Nasdaq Global Select Market under symbol CD.