Electronic boards display various stock prices at Exchange Square in Hong Kong on March 9, 2020. (ISAAC LAWRENCE / AFP)

GDS Holdings Ltd, a Chinese mainland data center company traded on the Nasdaq, is considering selling shares in the Hong Kong Special Administrative Region as early as this year, following in the steps of US-listed mainland firms like NetEase Inc and JD.com Inc, according to people with knowledge of the matter.

GDS is working with investment banks on the potential transaction, which could raise about US$1 billion for the Shanghai-based firm, the people said, asking not to be identified because the matter is private

GDS is working with investment banks on the potential transaction, which could raise about US$1 billion for the Shanghai-based firm, the people said, asking not to be identified because the matter is private. Deliberations are preliminary and both the timing and size of the deal could still change, the people said.

A representative for GDS declined to comment on the matter.

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Founded in 2001, GDS develops and operates data centers in major mainland cities such as Beijing, Shanghai and Guangzhou, according to its website. Its customers include internet companies, financial institutions, telecommunications carriers and IT services providers as well as other local and multinational firms.

The company debuted in the US in 2016. Its shares have risen nearly 46 percent this year, giving it a market value of about US$11.4 billion.

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A secondary listing in Hong Kong would see GDS follow the blockbuster deals of e-commerce giant JD.com and NetEase, the mainland’s second largest gaming company.

Last week, JD.com, which is also listed on the Nasdaq, raised US$3.9 billion in its Hong Kong equity sale. NetEase Inc raised US$2.7 billion in its Hong Kong offering earlier this month.

They follow Alibaba Group Holding Ltd’s US$13 billion stock sale in Hong Kong last year, which was hailed as a homecoming for mainland companies listed overseas.

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