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Csquare IPO prices below range as data center investor appetite cools
The Dallas-based company raised $1.01B, after pricing at $21 per share, and plans to use proceeds to help pay down debt including a $771M revolving credit facility.
Csquare, a Dallas-based data center operator backed by Brookfield Asset Management, priced its initial public offering on Wednesday at $21 per share, below its $23 to $27 target range.
The IPO generated $1.01B for Csquare after $40M in commissions and discounts, but it fell roughly $300M short of the $1.35B amount it aimed to raise. Shares began trading on the New York Stock Exchange on Thursday under ticker CSQR.
Csquare owns 63 North American data centers and one in London, generating most revenue from colocation and interconnection services. The company reported a first-quarter loss of $66M as financing costs outpaced growth.
According to a release cited by the outlet, Csquare plans to use part of net proceeds to pay down debt, including a $771M revolving credit facility and $150M in promissory notes to Brookfield. The filing and earlier deal activity also include a $785M distribution to Brookfield last year, described as four times 2025 operating cash flow.