Overview
- Baidu said it confidentially filed a listing application on Jan. 1 for Kunlunxin’s H shares as part of a proposed spin-off, with the unit expected to remain a Baidu subsidiary.
- Key terms, including offering size and structure, are undecided, and Baidu cautioned there is no assurance the transaction will proceed or on what timetable.
- Investor appetite for Chinese AI chip stocks is strong, highlighted by Shanghai Biren’s Hong Kong debut that raised HK$5.58 billion and closed up about 76% after retail subscriptions exceeding 2,300 times.
- Kunlunxin, founded in 2012 inside Baidu and later operated independently, has expanded sales beyond Baidu; Reuters reported revenue was projected to top 3.5 billion yuan last year with break-even and a rising share from external customers in 2025.
- Baidu owns roughly 59% of Kunlunxin, prior funding valued the unit around 21 billion yuan, and Jefferies has floated a potential valuation range of about $16 billion to $23 billion.