DayOne weighs delaying or scaling back US IPO amid data centre volatility
A smaller offering could raise US$2.5 billion to US$3 billion, people familiar with the matter said. No final decision has been made.
Singapore-based DayOne Data Centers is considering whether to postpone its US initial public offering or reduce its size as volatility affects the data centre sector, Bloomberg reported, citing people familiar with the discussions.
One option would be a smaller sale raising US$2.5 billion to US$3 billion, the people said. Earlier discussions envisaged proceeds of up to US$5 billion, potentially in the fourth quarter, with a valuation of about US$20 billion.
The company remains in talks with prospective investors and wants to proceed when market conditions permit, according to the people. It could still launch within weeks, although no decision has been reached. DayOne declined to comment.
The deliberations come as other data centre operators face setbacks in equity markets. Firmus Grid withdrew an approximately US$5 billion IPO after investors resisted its proposed valuation. AirTrunk postponed its planned Singapore real estate investment trust listing until 2027.
DayOne submitted its US IPO filing earlier in October. Morgan Stanley, JPMorgan Chase & Co, Bank of America and Citigroup are leading the offering. IFR separately reported that the company was seeking further investor feedback before proceeding.
DayOne has raised billions of dollars privately to fund its development pipeline. Its investors include Coatue, Hillhouse, GDS Holdings, the SoftBank Vision Fund and Citadel’s Ken Griffin.
