VNET Group (VNET) stock underwent a massive rally on Wednesday after the Chinese internet data center services provider announced new strategic investors. The company has reached a share purchase agreement with PJ Millennium Limited Partnership subsidiaries PJ Millennium I Limited and PJ Millennium II Limited.
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Under the terms of this agreement, Success Flow International Investment Limited and Choice Faith Group Holdings Limited have agreed to sell up to 650,424,192 shares of VNET for $1.4486 each. This is the equivalent of $8.6914 per American Depositary Share (ADS). Following this share sale, PJ Millennium I Limited and PJ Millennium II Limited will hold up to a 38.1% stake in VNET Group.
Josh Sheng Chen, founder, executive chairman, and CEO of VNET Group, said, “We are pleased to welcome our new strategic investors and greatly appreciate their strong support for VNET and our long-term vision. Looking ahead, we will work closely with our strategic partners to deepen collaboration across technology and supply chains, and to jointly advance original, end-to-end innovation across the next generation of the AIDC industry.”
VNET Group Stock Movement Today
VNET Group stock was up 27.94% in premarket trading on Wednesday, extending a 36.64% rally year-to-date. The stock has also climbed 44.78% higher over the past 12 months.
With today’s news came heavy trading of VNET stock, as more than 7.85 million shares changed hands. This was well above the company’s three-month average daily trading volume of about 5.73 million shares.
Is VNET Group Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for VNET Group is Moderate Buy, based on two Buy ratings over the past three months. With that comes an average VNET stock price target of $16.70, representing a potential 42.61% upside for the shares.
