Chindata Group Holdings Ltd. is looking to raise as much as $540 million in its U.S. initial public offering, hoping to ride a wave of investor interest for companies seen to be benefiting from the stay-at-home trend.

Chindata plans to sell 40 million American depositary shares for $11.50 to $13.50 each, according to a filing Wednesday with the U.S. Securities and Exchange Commission. The company, backed by private equity firm Bain Capital, is a data center operator focused on China, India and Southeast Asia.

At the top of the marketed range, Chindata would be valued at about $4.9 billion based on the outstanding shares listed in the prospectus.

Chindata’s IPO comes at a time when investors are showing enthusiasm for companies providing cloud computing and other services needed for employees stuck at home. Tech stocks have staged a rebound globally since March lows as buyers flocked to names seen to be benefiting from social distancing and remote work. It is joining rivals GDS Holdings Ltd. and 21Vianet Group Inc. in listing in the U.S.

Chindata had revenues 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 is being led by Morgan Stanley and Citigroup Inc. The company’s depositary shares, each representing two ordinary Class A shares, are expected to trade on the Nasdaq Global Select Market under symbol CD.

Source: Bloomberg

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