ChinData Group sought the help of Citigroup Inc., Credit Suisse Group AG and Morgan Stanley for its planned IPO that would likely take place in the U.S. and could raise up to US$500 million, Bloomberg News reported, citing people with knowledge of the matter.

The unnamed sources added that deliberations for the initial offering are still at an early stage and that details such as listing venue and size could still change. An earlier report suggested that any deal would value the Bain Capital LP-backed Chinese data center operator at more than US$1 billion.

Following its merger with Bridge Data Centres, ChinData gained facilities in China, India and Southeast Asia. According to the news platform, it intends to use proceeds from the IPO to finance its expansion.

Representatives for the private equity firm, ChinData and the investment banks declined to comment, the Jan. 16 report added.