GDS-SW (09698) intends to privately place $300 million of Series B convertible preferred stock to Huatai Capital.

The announcement of GDS-SW (09698) states that $300 million of Series B Convertible Preferred Stock will be privately placed to a Chinese institutional investor, Huatai Capital Investment Co., Ltd. GDS Global will use the proceeds from the private placement to expand data center capacity and for general corporate purposes. The cumulative annual dividend rate for the convertible preferred stock for the first six years shall not be less than 3.75%, and from the sixth year onwards, the minimum dividend rate will increase to 6.75% with a 50 basis point increase every quarter. The conversion price is approximately $54.43 per GDS American Depositary Share, representing a premium of 17.5% over the closing price in Hong Kong as of January 30, 2026. The Board of Directors believes that the private placement is beneficial for the company and shareholders as it strengthens the relationship with one of China's leading financial institutions, allowing the company to further enhance the "control" of Chinese nationals in terms of voting rights, and continue to serve its major clients in mainland China.