Baidu’s AI Chip Unit Kunlunxin Plans Hong Kong Listing
The filing comes amid a surge of AI-related listings in Hong Kong
Baidu’s BIDU -1.30%decrease; red down pointing triangle AI chip unit Kunlunxin has confidentially filed an application to list on the Hong Kong stock exchange, the latest company to capitalize on the frenzy surrounding artificial intelligence.
Baidu, the Beijing-based search giant, said in a filing with the Hong Kong Stock Exchange on Friday that a listing application had been submitted on Jan. 1. It didn’t provide any details about the size of the offering.
Baidu’s Hong Kong-listed shares rose 7.5% to 141.30 Hong Kong dollars, equivalent to $18.16, at the midday break, outperforming Hang Seng Tech’s 3.4% gain.
Citi analysts said in a research note that while the move wasn’t a surprise, its timing was earlier than expected.
Baidu, which was once considered one of China’s most important technology titans alongside Alibaba Group and Tencent Holdings 700 3.76%increase; green up pointing triangle, has been facing pressure on both its top and bottom lines as its main advertising business slows. The company has been investing heavily in fields such as chip development, AI and self-driving technology as it seeks new avenues for growth.
Jefferies analysts said in a research note that Kunlunxin is likely to be valued between US$16 billion to US$23 billion. It maintained a buy rating on Baidu and raised the target price its Hong Kong shares to HK$176.00 from HK154.00 as it factored in the potential spin-off and listing of the chip unit.
The filing comes amid a surge of AI-related listings in Hong Kong. On Friday, AI chip maker Shanghai Biren Technology saw its shares soar 92% at its debut.
AI start-up MiniMax said earlier this week that it expects to raise HK$4.19 billion, while Knowledge Atlas Technology, better known as Zhipu AI, plans to raise HK$4.35 billion in their IPOs. Their shares were expected to start trading in early January.