Alibaba Announces HKEX Approval for T-Head Semiconductor Spin-off IPO
Alibaba states the Hong Kong Stock Exchange has approved plans to spin off its semiconductor subsidiary T-Head, following a confidential filing in September.
Chinese technology giant Alibaba Group announced late Tuesday that the Hong Kong Stock Exchange (HKEX) has allowed the company to spin off its semiconductor subsidiary, T-Head. Alibaba stated it plans a public offering for T-Head shares in Hong Kong, subject to final approval from the exchange and the China Securities Regulatory Commission (CSRC).
According to disclosures, Alibaba had already filed confidentially on September 11 to list T-Head on the HKEX. The announcement did not disclose a specific date or proposed size for the listing. Following the news, Alibaba's Hong Kong-listed shares traded approximately 1% lower on Wednesday morning, down about 29% year-to-date.
T-Head is Alibaba's subsidiary focused on developing artificial intelligence chips, positioned as a potential rival to Nvidia in the Chinese market. In late September, Alibaba unveiled its next-generation AI chip, the Zhenwu V900, claiming it delivers three times the performance of its predecessor, the Zhenwu M890 released in May. This move aims to counter U.S. restrictions on China's access to advanced chips by promoting domestic alternatives.
In recent months, Chinese financial regulators have increased scrutiny on tech IPOs and the rush of capital into the sector. Meanwhile, other Chinese chip companies, such as Baidu's Kunlunxin and memory chip maker YMTC, have reportedly delayed their own listing plans.