Sources: DayOne is weighing options for its US IPO, including a delay or smaller listing that could raise $2.5B to $3B, after initially seeking up to $5B in Q4 (Bloomberg)

Singapore-based data center firm DayOne is evaluating its options for a potential US IPO, according to sources familiar with the matter. The company is considering delaying the listing, reducing its size, or opting for a smaller listing that could raise between US$2.5 billion and US$3 billion, roughly half of the original target of US$5 billion, the sources said.

DayOne, backed by investment firms like Coatue and Hillhouse, is still engaged with potential investors and aims to proceed as soon as the market conditions improve, the sources added. The company had initially targeted a valuation of around US$20 billion for the IPO, which would have made it one of the largest US tech IPOs in recent years.

However, a negative sentiment towards data center IPOs has emerged amid broader market volatility, with companies like Firmus Grid, AirTrunk, and Elice experiencing setbacks in their IPO efforts. DayOne has been raising capital through private funding rounds to support its data center expansion across Asia, Europe, and the US. The company filed for its US IPO in October and is currently seeking feedback from potential investors, with Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup leading the underwriting process.