10 Stocks Crash Harder Than Wall Street

8. GDS Holdings Limited (NASDAQ:GDS)

GDS Holdings dropped for a second day on Wednesday, losing 8.73 percent to finish at $24.77 apiece as investors soured on an investment firm’s lower price target for the company while digesting its planned $623-million fundraising activity.

On Wednesday, Jefferies markedly lowered its price target for GDS Holdings Limited (NASDAQ:GDS) by 22 percent to $37.32 from $47.76 previously, following its planned fundraising program that is expected to dilute ADS by 5 percent.

However, Jefferies maintained its Buy recommendation on the stock.

In separate statements, GDS Holdings Limited (NASDAQ:GDS) said it was planning to raise a higher amount from the issuance of convertible notes, now at $500 million versus the $450 million previously. The notes carry a 2.32 percent yield and are set to mature in 2032.

Meanwhile, the remaining $123 million is expected to be raised from the issuance of American Depositary Shares (ADS), each representing eight Class A ordinary shares, at a price of $24.50 apiece.

The company said proceeds will be used for general corporate purposes, working capital needs, and the refinancing of its existing indebtedness, including potential future negotiated repurchases or redemption upon exercise of the investor’s put right of its convertible bonds due 2029.