VNET to Raise US$137.7 Million via 81 Million Share Private Placement
VNET Group will issue 81.0 million Class A shares at US$1.7 each in a private placement, raising about US$137.7 million before fees. The company plans to use proceeds for working capital, capital expenditures and potential strategic transactions, with closing expected by March 3, 2026.
1. Private Placement Terms
VNET Group will sell 81.0 million newly issued Class A ordinary shares at US$1.7 per share (US$10.2 per ADS) to institutional investors, generating gross proceeds of approximately US$137.7 million. The transaction is slated to close on or about March 3, 2026, subject to customary closing conditions.
2. Use of Proceeds
The company intends to deploy the proceeds for general corporate purposes, including enhancing working capital, funding capital expenditures and pursuing potential strategic transactions to support its data center and cloud services expansion in China.
3. Regulatory and Distribution Compliance
The shares are being offered outside the United States under Regulation S and have not been registered under the Securities Act of 1933 or state securities laws. A 40-day distribution compliance period will apply before any resale to U.S. persons.
4. Placement Agents and Advisors
Deutsche Bank AG, Hong Kong Branch and China International Capital Corporation Hong Kong Securities Limited are acting as placement agents for the offering. Davis Polk & Wardwell LLP is serving as legal advisor to VNET on the transaction.