Alibaba plans Hong Kong IPO for chip unit Pingtouge
Alibaba plans to list its chip subsidiary Pingtouge on the Hong Kong Stock Exchange. The company submitted a confidential application in September, which has been accepted. Alibaba says the move will benefit both entities by clarifying value and improving access to capital markets.
Alibaba Group plans to spin off its chip business, Pingtouge, for an independent listing on the main board of the Hong Kong Stock Exchange, the company announced.
According to a statement, Pingtouge submitted a confidential listing application to the exchange on 11 September, which has been acknowledged, allowing the proposed spin-off to proceed.
Alibaba said the proposed spin-off would be commercially beneficial for both the group and Pingtouge. It said the move should allow investors to better assess the value of Alibaba’s retained group businesses while continuing its diversified business model. It would also better reflect and enhance Pingtouge’s own value, improve its independent profile, help in business negotiations, and facilitate independent access to equity and debt capital markets.
Pingtouge is a Chinese full-stack data-centre chip supplier whose chips enable system-level computing solutions. After the proposed spin-off, Pingtouge is expected to remain a subsidiary of Alibaba.