Chinese Data Center Firm Zdata Is Said to Consider Hong Kong IPO

(Bloomberg) — Chinese data center firm Zdata Technologies Co. is considering a potential initial public offering in Hong Kong, according to people familiar with the matter.

The company, whose clients include JD.com Inc., TikTok-owner ByteDance Ltd. and Tencent Holdings Ltd., has held early talks with prospective advisers as it evaluates the merits of a share sale, the people said, asking not to be identified as the information isn’t public. Zdata could be valued at more than $5 billion in a potential listing, the people said.

Considerations are preliminary, no final decisions have been made and the company may decide against pursuing any transaction, the people said.

Zdata didn’t immediately respond to a request seeking comment.

The digital infrastructure company would join a growing pipeline of potential IPOs in Hong Kong next year after the city’s listings market staged a tentative rebound in the past two months thanks to the Chinese government’s efforts to stimulate the economy.

The Hang Seng Index is heading for its first annual gain since 2019 with a roughly 15% rise this year as investors turned slightly more positive on China.

Hong Kong listings have raised over $9 billion this year, a significant increase from all of 2023, data compiled by Bloomberg show. Still, that amount is a far cry from the levels of activity seen during and before Covid.

Zdata was established in 2014 and provides cloud-network convergence and IT infrastructure services, according to its website. It is planning to build over 30 green data centers in areas such as Beijing, Tianjin and Shaoguan with a total capacity of 3 gigawatts.

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