(Bloomberg) -- Chindata Group Holdings Ltd. rose as much as 17% in its trading debut after raising $540 million in a U.S. initial public offering priced at the top of a marketed range.
Shares of the Chinese data center operator, which is backed by private equity firm Bain Capital, were up 15% to $15.55 at 1:34 p.m. in New York trading Wednesday, giving the company a market value of about $5.6 billion based on the outstanding shares listed in the prospectus. Chindata sold 40 million American depositary shares at $13.50 each on Tuesday.
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.
Chindata had revenue 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 was led by Morgan Stanley and Citigroup Inc. The company’s depositary shares, each representing two ordinary Class A shares, are trading on the Nasdaq Global Select Market under symbol CD.
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