Brookfield-backed Csquare valued at $3.2 billion in NYSE debut

By Atharva Singh and ‌Prakhar Srivastava

July 16 (Reuters) - ​Brookfield-backed ​data center provider Csquare's shares opened marginally lower before closing 1.57% lower in their New York Stock Exchange debut on ‌Thursday, after the initial public offering was priced below its ⁠marketed range.

Shares opened at $20.9 after the Dallas-based company priced its IPO at $21 per share, ‌below its marketed range of $23 ‌to $27. It closed at $20.67, valuing the firm at $3.2 billion.

The debut underscores investors' caution toward new listings, even for companies benefiting from booming ​AI-driven data center demand, as markets scrutinize valuations and pricing.

The company's decision to price below its marketed range suggests investors remain selective ⁠despite the AI frenzy.

"Csquare likely had to price below the range because investors saw attractive exposure to ​data-center demand amid substantial leverage and continued losses," said IPOX Research Associate Lukas Muehlbauer.

"Investors were not willing to support ​the marketed range, pointing to a ‌selective buyer's market that is not simply taking anything with AI exposure at any cost."

However, growing investor appetite for ⁠companies supporting AI development has sparked a wave of listings in the sector.

The debut comes a week after South Korean chipmaker SK Hynix's $26.5-billion U.S. listing.

It also ⁠follows the blockbuster debut of chip designer Cerebras Systems, as well as Blackstone-backed data ​center REIT, which raised $1.75 billion in its U.S. IPO in May.

"Still, completing the deal shows that the market remains open for AI-infrastructure companies, although the reception looks ‌disciplined rather than overheated," Muehlbauer added.

Brookfield is expected to retain voting control of Csquare following the offering, according ‌to a IPO filing.

Founded in 2019, Csquare owns and operates data centers across ⁠North America and Europe, providing ‌space, power and connectivity ​services to enterprise customers, cloud providers and telecommunications companies.

(Reporting by Atharva Singh and Prakhar Srivastava in Bengaluru; Editing by ‌Shailesh Kuber)

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