Singapore-based DayOne weighs delaying or downsizing US IPO to $2.5B-$3B

According to Bloomberg, Singapore-based data center operator DayOne Data Centers Ltd. is weighing options for its planned US initial public offering (IPO), including a potential delay or significant reduction in size. Sources indicate that the company initially targeted raising up to $5 billion as early as the fourth quarter at a valuation of approximately $20 billion. It is now considering a smaller listing that could raise between $2.5 billion and $3 billion, roughly half of the original goal.

This reconsideration follows a broader pullback in digital infrastructure listings. Australian operator Firmus Grid recently pulled its roughly $5 billion IPO due to investor pushback on valuation, while AirTrunk delayed its planned REIT IPO in Singapore to 2027. South Korean firm Elice plunged 32% in its Seoul trading debut, and CoreWeave shares have more than halved since their May peak.

DayOne's offering is being led by Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp., and Citigroup Inc. Its backers include Coatue, Hillhouse, GDS Holdings, SoftBank Vision Fund, and Citadel founder Ken Griffin. Despite the market headwinds, sources say DayOne continues to engage with investors and hopes to move forward once conditions allow, though no final decision has been made.