Alibaba said the Hong Kong Stock Exchange approved the proposed spin-off and separate listing of its chip subsidiary T-Head. The offering still needs further regulatory approvals, and Alibaba did not disclose its size or valuation.
Alibaba Group said Tuesday it received approval from the Hong Kong Stock Exchange to proceed with the spin-off and separate listing of its semiconductor subsidiary T-Head. The move would give investors direct exposure to its data-center chip business.
What Alibaba disclosed about the listing
T-Head confidentially submitted a listing application on September 11, seeking to list its H shares on the exchange's main board, according to an Alibaba regulatory announcement dated November 10. The offering would combine a Hong Kong public offering with a placement of shares to institutional and professional investors.
T-Head is currently wholly owned by Alibaba and is expected to remain a subsidiary after the listing. However, Alibaba did not disclose the anticipated size of the offering, its valuation or how much of the subsidiary it intends to sell. Those details have yet to be finalized.
Why Alibaba wants a separate listing
Alibaba said a separate listing would let investors assess the semiconductor business independently from its broader operations. It could also give T-Head more direct access to equity and debt financing, and strengthen its profile with customers, suppliers and strategic partners.
The company also secured a waiver from the exchange's requirement to give existing shareholders an assured entitlement to shares in the spun-off business. Alibaba said such an entitlement would involve disproportionate costs and regulatory complexity, including potential U.S. securities registration requirements.
Approvals pending and outside estimates
The listing remains subject to further approvals, including from the exchange's Listing Committee and a filing with China's securities regulator. Alibaba cautioned that there is no assurance the spin-off will be completed or when it might take place.
Crypto Briefing, by contrast, reported that the offering is targeted for 2027 and anticipated to raise between US$2 billion and US$3 billion. It added that analysts foresee a standalone valuation of US$25 billion to US$62 billion for T-Head.
Sources: Investing.com, Crypto Briefing
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