Nov 10 (Reuters) – China’s Alibaba Group said on Tuesday its chip unit T-Head had confidentially filed an application for a Hong Kong initial public offering after the stock exchange cleared the Chinese e-commerce giant to proceed with the proposed spin-off.
T-Head submitted a confidential Form A1 listing application on September 11 for a proposed offering comprising a Hong Kong public share sale and an institutional placement, Alibaba said in an exchange filing.
The size of the deal, offering structure and Alibaba’s post-listing stake have yet to be determined, the company added.
Alibaba said the spin-off would allow investors to better value its core businesses and T-Head separately while helping the chipmaker raise capital independently and enhance its profile with customers, suppliers and strategic partners.
Founded in 2018, T-Head Semiconductor is Alibaba Group’s wholly owned semiconductor chip unit, developing processors ranging from data centre and artificial intelligence chips to Internet-of-Things products across the full chip design stack.
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Tasim Zahid)
