SG data center firm DayOne said to line up banks for $5b US IPO

Singapore-based data center operator DayOne Data Centers Ltd. is in early stages of planning a US$5 billion IPO, according to sources familiar with the matter.

The company has selected JPMorgan Chase and Morgan Stanley as lead advisors, with Bank of America and Citigroup also involved.

The offering could occur as soon as this year.

Backed by Chinese data center operator GDS Holdings Ltd., DayOne is targeting a valuation of up to US$20 billion.

The size and timing of the IPO remain uncertain, and more banks may join the deal.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

DayOne aims for a valuation near double its recent $10 billion mark, with big-name backers

DayOne is weighing an IPO that could price the company around US$20 billion, up sharply from its latest private valuation.
Earlier this year, it raised more than US$2 billion in a Series C that was expected to value the business at about US$10 billion 1.
That Series C priced at a 100% premium to the previous financing, as investors paid more for its growth prospects 2.
GDS Holdings backs DayOne, yet GDS’s equity interest fell from 52.7% to 35.6% after DayOne’s Series B equity raise closed on December 31, 2024. GDS no longer treats DayOne as a subsidiary and now records it as an equity investee 3.
Other backers include Coatue Management (a technology-focused hedge fund) and Citadel CEO Kenneth Griffin (the founder of Citadel, a major hedge fund and market maker) 4.

DayOne’s IPO puts infrastructure spin-offs under the spotlight

The listing would test GDS’s split approach, with GDS keeping its China-focused business while DayOne runs operations outside China 3.
If the shares trade well, the deal could offer a template for firms that want to separate overseas assets to surface value.
The float would also gauge demand for specialized “AI-ready” data centers, built for high-density, liquid-cooled workloads that run modern AI models 2.