GDS Raises US$300 Million via Premium-Priced Convertible Preferred Share Placement

GDS Holdings Ltd. ( (HK:9698) ) just unveiled an announcement.

GDS Holdings Limited has closed a US$300 million private placement of Series B convertible preferred shares to Huatai Capital Investment Limited, a Chinese institutional investor, with the deal completing on 6 February 2026. The preferred shares are convertible into Class A ordinary shares at a price equivalent to about US$54.43 per ADS, reflecting a significant premium to recent trading levels, and will carry voting rights equivalent to the number of Class A shares into which they are convertible. Upon full conversion, Huatai would hold roughly 5.5 million ADSs (44.1 million ordinary shares), representing 2.6% of GDS’s total outstanding shares and between 1.2% and 2.7% of voting power depending on the Class A–to–Class B voting ratio, modestly diluting existing shareholders while leaving founder William Wei Huang’s control via Class B shares intact and further diversifying the institutional investor base.

The most recent analyst rating on (HK:9698) stock is a Buy with a HK$49.00 price target. To see the full list of analyst forecasts on GDS Holdings Ltd. stock, see the HK:9698 Stock Forecast page.

More about GDS Holdings Ltd.

GDS Holdings Limited is a Cayman Islands–incorporated, Hong Kong–listed company that operates under a weighted voting rights structure and also trades on the Nasdaq Global Market via American depositary shares under the symbol GDS. The company carries on business in Hong Kong as GDS WanGuo Holdings Limited and has a dual-class share structure with Class A and Class B ordinary shares, giving its controlling shareholder enhanced voting power relative to public investors.

Average Trading Volume: 5,416,253

Technical Sentiment Signal: Buy

Current Market Cap: HK$70.33B

For a thorough assessment of 9698 stock, go to TipRanks’ Stock Analysis page.