Baidu has outlined plans to spin off Kunlunxin, its artificial intelligence chip subsidiary, and seek a separate listing for the business on the Main Board of the Hong Kong Stock Exchange.
According to the company, the proposed transaction is intended to allow Kunlunxin to “independently showcase” its business and valuation, draw interest from investors specialising in the AI semiconductor space, and use a standalone listing to “enhance its market profile, broaden financing channels, and better align management accountability with performance”.
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Baidu added that the move is also part of its broader effort “to unlock the value of Baidu’s AI-powered businesses”.
A listing application has been confidentially submitted to the Hong Kong bourse.
Following completion of the spin-off, Baidu expects Kunlunxin to remain its subsidiary.
Kunlunxin develops chips used in data centre servers and was established to support Baidu’s demand for computing capacity across its online services.
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By GlobalDataThe unit operates in a sector where a limited number of Chinese companies design high-performance accelerators for AI workloads.
Kunlunxin has been valued at no less than $3bn, according to Bloomberg.
Key terms of the deal are still under discussion, and the company stressed that the plan remains subject to multiple conditions.
These include securing approval from the Hong Kong Stock Exchange, completing the required filing with the China Securities Regulatory Commission, and final decisions by both Baidu and Kunlunxin.
Baidu cautioned that “there is no assurance that the Proposed Spin-off will take place or when it may take place.”
The filing comes as several Chinese chipmakers pursue listings amid increased focus on domestic technology 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 rose 82% on its first day of trading today in Hong Kong after the company raised $717m in its offering.
Biren’s shares opened at HK$35, compared with an offer price of HK$19, which was set at the top of the indicative range.
The retail tranche of the deal attracted subscriptions exceeding the shares available by more than 2,300 times.
