GDS Holdings Limited (GDS-SW) saw its stock price plummet by 5.14% in the morning session on Friday, following the company's announcement of a new listing on the Hong Kong Stock Exchange. The sharp decline comes as a surprise to some investors, given that new listings often generate positive market sentiment.

According to the company's statement, GDS Holdings has listed its American Depositary Shares (ADS) on the Nasdaq Global Market in the United States, trading under the symbol GDS. Each ADS represents eight Class A ordinary shares. This move is part of GDS's primary ADS offering, as detailed in their recently furnished prospectus supplement.

While the reasons for the stock's decline are not explicitly stated, market analysts suggest that investors may be reacting to potential share dilution concerns associated with the new listing and ADS offering. Additionally, the dual-listing strategy might have created uncertainty among some shareholders about its impact on the company's overall value. It's also possible that some investors are taking profits following any price increases that may have occurred in anticipation of this announcement.