Written by Tracy Koo
Baidu's AI chip unit Kunlunxin has secretly filed an application to list on the Hong Kong Stock Exchange, becoming the latest company to capitalize on the excitement surrounding artificial intelligence.
Beijing-based search giant Baidu said in a filing with the Hong Kong Stock Exchange on Friday that its listing application was filed on January 1, but did not provide details on the size of the listing application.
Baidu's Hong Kong-listed shares rose 7.5% to HK$141.30 (equivalent to $18.16) at the midday break, outpacing Hang Seng Tech's 3.4% rise.
Citi analysts said in a research note that while the move was not a surprise, its timing was earlier than expected.
Baidu, once considered one of China's most important technology giants along with Alibaba Group and Tencent Holdings, is facing pressure on both revenue and revenue as its main advertising business slumps. The company is investing heavily in areas such as chip development, AI and self-driving technology as it looks for new avenues of growth.
Analysts at Jefferies said in a research note that Kunlunxin's value is likely to be between US$16 billion and US$23 billion. The company maintained a buy rating on Baidu and raised its target price for the Hong Kong stock from HK$154.00 to HK$176.00, factoring in the possibility of a chip division spin-off and listing.
The filing comes amid a surge in AI-related listings in Hong Kong. On Friday, shares of AI chip maker Shanghai Bilian Technology soared 92% on its debut.
AI startup MiniMax announced earlier this week that it expects to raise HK$4.19 billion, while Knowledge Atlas Technology, better known as Zhipu AI, plans to raise HK$4.35 billion in its IPO. Shares in both companies were scheduled to begin trading in early January.
Email Tracy Qu at tracy.qu@wsj.com.
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01-01-26 2337ET
