Why GDS Holdings Stock Rocketed 17% Higher Today
After news broke of a potential initial public offering (IPO) of a key business unit, investors piled into GDS Holdings (NASDAQ: GDS) on Tuesday. That rush powered the Chinese data center specialist's stock to an over 17% gain on the day, crushing the marginal gain of the bellwether S&P 500 (SNPINDEX: ^GSPC).
Late Monday night, Bloomberg reported that GDS is mulling the U.S. IPO of DayOne. Previously known as GDS International, the unit consists of the company's operations outside its native China.
Citing unnamed "people familiar with the matter," the financial news agency said that GDS could list DayOne on an American exchange as soon as this year. It is currently in discussions with banks regarding an IPO; Bloomberg did not identify any of those lenders.
Source Fool.com
