Data centre firm GDS's figures don’t stack up: short seller

Temasek-backed GDS is taking advantage of blind euphoria over data centres' growth prospects, Blue Orca says. GDS hits back. Whether the claims are true or not investors should take a more critical look at serial capital-raisers using lofty valuations to make acquisitions.

Activist investment fund Blue Orca Capital says Nasdaq-listed developer and operator of data centres, GDS Holdings, is another Chinese company whose financial accounts do not add up. 

If the Texas-based short-seller's allegations prove to be true it will be painful for GDS's equity investors and creditors, which include Singaporean state fund Temasek.

It could also mean egg on the face for early investors in GDS including the International Finance Corp and Japan’s Softbank.

GDS’s stock hit a high of $45.72 on July 14, up over 400% since its IPO in November 2016 at $10. Blue Orca values GDS’s...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222