Chinese data center co VNET slides on $400 mln convertible offering launch

U.S.-listed shares of VNET Group VNET.O down 10.3% premarket to $9.87 as co seeks capital raise

Beijing-based firm commenced offering of $400 mln 5-yr convertible bonds (CBs)

Co plans to use net offering proceeds to invest in wholesale internet data center projects, working capital and general purposes

Investment giant Blackstone BX.N made a $150 mln investment in VNET (formerly 21Vianet) in 2020 via a private placement, and in 2022 bought $250 mln of its CBs

Blackstone is VNET's 2nd largest shareholder with ~10.4 mln shares, or ~4% stake, as of Dec 31, per LSEG data

VNET has ~263.2 mln shares outstanding for $2.9 bln market cap

Goldman Sachs sole bookrunner for the offering

VNET shares ended 2024 at $4.74 and closed a year ago at $1.95