Bloomberg: Baidu's AI chip unit may delay its Hong Kong IPO to 2027
Kunlunxin could push its offering back to next year, people familiar with the matter told Bloomberg
Kunlunxin’s IPO was one of the most anticipated listings in Hong Kong this year / Photo: T. Schneider / Shutterstock.com
The IPO of Kunlunxin, Baidu’s AI chip unit, could slip to next year as the company awaits approval from the China Securities Regulatory Commission, Bloomberg reports, citing people familiar with the matter.
Kunlunxin, which makes chips for data center servers, filed confidentially in January for a Hong Kong IPO that was expected to raise $2 billion. The people told Bloomberg that Kunlunxin had expected regulatory approval in the summer, but it did not come through. Preparations are still underway, though the people said the offering now looks more likely to take place in 2027, subject to regulatory approval.
A Baidu representative said the company rejected what it called “market rumors.” “As Kunlunxin is undergoing its confidential filing process, and per regulatory requirements, we can’t disclose any material nonpublic information, which would include the progress of the listing process,” the spokesperson said, adding that the company would make a public announcement in due course. The CSRC did not immediately respond to a request for comment.
Context
Kunlunxin was set up in part to supply computing power for Baidu’s online businesses and remains one of the few Chinese companies that can design powerful accelerators for AI systems. Alongside Huawei Technologies and Cambricon Technologies, Kunlunxin is likely to play a key role in Beijing’s efforts to build a domestic chip industry capable of competing with the U.S., Bloomberg writes.
Kunlunxin’s IPO was one of the most anticipated in Hong Kong this year, according to Bloomberg. IPOs in the city have raised $51.6 billion this year, putting the market within reach of its 2010 record. Companies in the AI supply chain accounted for the bulk of the activity, reflecting the sector’s central role in China’s tech ambitions.
Hong Kong IPO activity has slowed since September as investors around the world increasingly demand returns on the hundreds of billions of dollars poured into AI. Kunlunxin also began preparing this year for an IPO on the Shanghai Stock Exchange’s tech-focused STAR Board, though the Hong Kong offering was expected to come first.
