Baidu Inc. is charting a strategic course for its artificial intelligence chip division, Kunlunxin, by proposing a spin-off and separate listing on the Hong Kong Stock Exchange. This move aims to unlock the intrinsic value of Kunlunxin, attract specialized investors in the burgeoning AI chip sector, and bolster its market presence and financing capabilities.
The tech giant, publicly traded on NASDAQ as BIDU and on HKEX under 9888, has submitted a confidential application to the Hong Kong Stock Exchange for the listing of Kunlunxin’s H shares. While Kunlunxin will remain a subsidiary post-spin-off, the independent listing is designed to sharpen management’s focus on performance and provide a distinct platform for growth. This strategic maneuver is also intended to highlight the market potential of Baidu’s broader AI-driven businesses.
Details surrounding the proposed spin-off are still being finalized, and the transaction is contingent upon approvals from the Hong Kong Stock Exchange, regulatory filings with the China Securities Regulatory Commission, and the ultimate decisions of both Baidu and Kunlunxin. The company has cautioned that there is no certainty the spin-off will proceed or when it might occur.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities, particularly within the United States or any jurisdiction where such activity would be unlawful.
Baidu, established in 2000, is a prominent AI company with a solid internet infrastructure. Its mission is to simplify complex information through technology. The company’s shares are traded on NASDAQ under the ticker BIDU and on HKEX as 9888. Each Baidu American Depositary Share represents eight Class A ordinary shares.
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