VNET Group stock price drops, private placement dilutes equity

2026-02-27 20:15:59

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Investing.com – VNET Group Inc (NASDAQ:VNET) stock fell 6.9% on Friday after the company announced a private placement of 81 million new Class A common shares to institutional investors.

The internet data center service provider priced the Class A common shares at $1.70 per share, or $10.20 per American Depositary Share (ADS), with each ADS representing 6 Class A common shares. The offering is expected to dilute existing shareholders’ ownership stakes.

VNET expects to complete the private placement around March 3, 2026, subject to customary closing conditions. Before deducting placement agent fees and offering expenses, the total proceeds are estimated to be approximately $137.7 million.

The company stated that the proceeds will be used for general corporate purposes, including working capital, capital expenditures, and potential strategic transactions.

These securities will be sold in a private transaction and are not registered under the Securities Act of 1933. The offering is conducted in accordance with Regulation S of the Securities Act.

Deutsche Bank Hong Kong Branch and China International Capital Corporation Hong Kong Securities Limited are acting as placement agents for the offering. Davi Law Firm is serving as VNET’s legal advisor.

VNET Group is a Chinese internet data center service provider that operates as a carrier-neutral and cloud-neutral provider.

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