GDS-SW(09698): The final offering price for the initial public offering (IPO) of C-REIT is 3.00 yuan per share.

GDS-SW (09698) announced that, further to its previous announcement regarding regulatory approval and the launch of the C-REIT sale on June 26, 2025, the company today announced that the final sale price of the closed-end infrastructure securities investment fund (C-REIT) for its Southern Vanguards Data Center has been set at RMB 3.00 per share for its initial public offering (IPO) on the Shanghai Stock Exchange. The final sale price was determined after the institutional inquiry (with oversubscription of 166 times) was completed. C-REIT will issue a total of 800 million shares, equivalent to 100% of the shares issued after the completion of the IPO. The total proceeds to be received by C-REIT will be RMB 2.4 billion. Based on the final sale price, the implied EV/EBITDA (based on the forecasted EBITDA for C-REIT in 2026 of RMB 142 million) is 16.9 times. Based on the final sale price, the implied dividend yield per share (based on the forecasted cash flow available for distribution in 2026 of RMB 125 million) is 5.2%. Vanguards Data will enter into an agreement to sell 100% of the equity of a project company holding stable data center assets with a total enterprise value of approximately RMB 2.319 billion to C-REIT. After the sale is completed, Vanguards Data will receive a total net cash proceeds of approximately RMB 2.111 billion, including consideration for equity and cash dividends (net of taxes and certain other transaction costs). In addition, Vanguards Data will extinguish net debt and other liabilities of approximately RMB 62 million. Vanguards Data will reinvest RMB 480 million to subscribe to 20% of the shares issued in the C-REIT IPO. Vanguards Data will continue to operate and manage the relevant data center assets under a service agreement with the project company transferred to C-REIT. As a result, Vanguards Data will receive approximately RMB 5 million in annual fee income.