SBCVC-backed data center business files for US IPO

Documentation submitted to US regulators does not indicate the size or pricing of the offering. SBCVC holds an 18.1% interest in the business, having participated in a $23 million Series A round for GDS in 2007 alongside the International Finance Corporation (IFC). The same investors also provided $9 million in Series B funding in 2011. IFC transferred its holding to SBCVC in 2014.

GDS was established in 2006 and had eight self-developed data centers covering 39,781 square meters as of June. It also operates 10 smaller data centers owned by third parties. According to 451 Research, the company is the largest service provider in China's high-performance carrier-neutral data center services market, with 19.7% market share in 2015. It serves more than 300 customers, including internet companies, financial institutions and telecommunications and IT services providers.

In 2014, GDS completed the full acquisition of EDC Holding, a China data center infrastructure services provider. As result, EDC shareholders own 7.6% of the company. Ping An has a 9.1% interest, while Singapore Technologies Telemedia holds 45.1%, having invested $247 million in 2014 and subsequently subscribed to bonds issued by GDS. Telemedia has a substantial data center business globally.

GDS posted RMB703.6 million ($105.9 million) in revenue for 2015, up from RMB468.3 million the previous year. EBITDA rose from RMB38 million to RMB164.7 million over the same period, while net losses narrowed from RMB130 million to RMB98.6 million.

SBCVC - previously known as SoftBank China Venture Capital - closed its fifth fund earlier this year at $459 million, beating an initial target of $400 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Technology
• IPO
• China
• Venture
• Softbank China Venture Capital
• Exit
• Ping An