Baidu’s Kunlunxin files confidentially for Hong Kong IPO

Baidu has outlined plans to rotation disconnected Kunlunxin, its artificial quality spot subsidiary, and question a abstracted listing for the concern connected the Main Board of the Hong Kong Stock Exchange.

According to the company, the projected transaction is intended to let Kunlunxin to “independently showcase” its concern and valuation, gully involvement from investors specialising successful the AI semiconductor space, and usage a standalone listing to “enhance its marketplace profile, broaden financing channels, and amended align absorption accountability with performance”.

Baidu added that the determination is besides portion of its broader effort “to unlock the worth of Baidu's AI-powered businesses”.

A listing exertion has been confidentially submitted to the Hong Kong bourse.

Following completion of the spin-off, Baidu expects Kunlunxin to stay its subsidiary.

Kunlunxin develops chips utilized successful information centre servers and was established to enactment Baidu’s request for computing capableness crossed its online services.

The portion operates successful a assemblage wherever a constricted fig of Chinese companies plan high-performance accelerators for AI workloads.

Kunlunxin has been valued astatine nary little than $3bn, according to Bloomberg.

Key presumption of the woody are inactive nether discussion, and the institution stressed that the program remains taxable to aggregate conditions.

These see securing support from the Hong Kong Stock Exchange, completing the required filing with the China Securities Regulatory Commission, and last decisions by some Baidu and Kunlunxin.

Baidu cautioned that “there is nary assurance that the Proposed Spin-off volition instrumentality spot oregon erstwhile it whitethorn instrumentality place.”

The filing comes arsenic respective Chinese chipmakers prosecute listings amid accrued absorption connected home exertion development.

Earlier this week, Shanghai Iluvatar CoreX Semiconductor began taking orders for a Hong Kong IPO targeting HK$3.7bn ($475m).

Separately, shares of Shanghai Biren Technology roseate 82% connected its archetypal time of trading contiguous successful Hong Kong aft the institution raised $717m successful its offering.

Biren’s shares opened astatine HK$35, compared with an connection terms of HK$19, which was acceptable astatine the apical of the indicative range.

The retail tranche of the woody attracted subscriptions exceeding the shares disposable by much than 2,300 times.

"Baidu’s Kunlunxin files confidentially for Hong Kong IPO" was primitively created and published by Verdict, a GlobalData owned brand.

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