Alibaba Moves to Spin Off T-Head Chip Unit for Hong Kong Listing
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MENAFNThe proposed separation has received clearance from the exchange to move forward, according to a regulatory filing. T-Head had submitted a confidential application for the listing on Sept. 11.
The planned offering would include a public share sale in Hong Kong alongside a placement targeting institutional and professional investors.
T-Head, which is fully owned by Alibaba, develops data center chips and computing solutions for the Chinese market. It is expected to remain part of the Alibaba group after the proposed listing.
Details of the offering, including its size and structure, have yet to be determined. Alibaba has also not finalized how much of its stake in the subsidiary it would retain.
Alibaba said listing T-Head separately would allow investors to evaluate the semiconductor business on its own merits, raise its visibility among customers and business partners, and give it direct access to equity and debt markets.
The plan still requires approval from Hong Kong's stock exchange, completion of regulatory filing requirements with China's securities regulator and final decisions by both companies.
Alibaba cautioned that there is no guarantee the separation will be completed or that the listing will take place on a specific timeline.
Chip Industry Faces Scrutiny As IPO Plans Evolve
The announcement comes as Nvidia faces increased scrutiny following reports that its chief executive, Jensen Huang, was the target of an alleged foreign intelligence operation.
Huang acknowledged being unfaithful to his wife in a statement Sunday and pledged to cooperate with an independent investigation. Nvidia's board said it had no reason to believe that US national security or the company's confidential information had been compromised.
The company's independent directors announced Tuesday that they had appointed former federal prosecutor Joon H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to lead the investigation.
Separately, US artificial intelligence company Anthropic disclosed plans for an initial public offering of 825 million shares, with an estimated price range of $70-$78 per share, in an updated regulatory filing submitted Tuesday.
The proposed sale, which includes shares offered by Anthropic and existing investors, could raise as much as $64.35 billion at the top of the indicated price range. The company has sought a Nasdaq listing under the ticker symbol “ANT.”
Meanwhile, listing plans involving other Chinese semiconductor companies have reportedly encountered delays.
Baidu's artificial intelligence chip subsidiary, Kunlunxin, could push back its planned Hong Kong IPO until 2027 as it awaits regulatory clearance from Chinese authorities, according to reports.
A Baidu representative dismissed the reports as market rumors, adding that the company could not reveal material nonpublic information while its confidential filing process remained underway.
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