11:12 AM EDT, 03/26/2024 (MT Newswires) -- GDS Holdings ( GDS ) said Tuesday that its DigitalLand Holdings unit has signed definitive agreements with certain institutional private equity investors for newly issued $587 million series A convertible preferred shares.

DigitalLand will have a total paid-up share capital of roughly $1 billion on a pro forma basis including the proceeds from the newly issued series A preferred shares, the company added.

The unit will utilize the proceeds to develop its existing portfolio of data center capacity in service and under construction, the company said.

Separately, the operator of data centers said it appointed Jamie Khoo as chief executive of DigitalLand, effective at the closing of series A capital raise.

Khoo will step down from her role as operations chief of the company. Kejing Zhang, Yan Liang, and certain other personnel have been assigned the responsibilities of the COO of the firm.

Shares of the company fell over 22% in recent Tuesday trading.

Price: 6.47, Change: -1.90, Percent Change: -22.70