Baidu, Inc. (NASDAQ:BIDU) shares climbed during Friday’s premarket session after fresh developments involving its AI chip subsidiary surfaced.
Investors reacted after reports suggested Kunlunxin could target a valuation exceeding 100 billion yuan during a Hong Kong listing process, according to people familiar with the matter, as the South China Morning Post reports.
Targets Massive $14.7 Billion Valuation
Kunlunxin reportedly continues preparations for a Hong Kong initial public offering amid rising investor appetite for Chinese semiconductor assets.
Sources familiar with the discussions said the company could pursue a valuation above $14.6 billion.
According to the media report, the final valuation could shift depending on market sentiment and offering terms.
The chipmaker previously submitted a confidential filing in January for a Hong Kong listing.
Mainland Listing Process Advances
Kunlunxin also advanced separate mainland listing efforts tied to China’s domestic technology expansion strategy, the South China Morning Post adds.
The company entered the mandatory IPO tutoring stage required for mainland public offerings. China International Capital Corp. will reportedly advise executives throughout the preparation process.
Regulatory filings from the China Securities Regulatory Commission disclosed the latest development Thursday, the report notes.
Kunlunxin aims to pursue a listing on Shanghai’s Star Market, which hosts many domestic technology firms.
Chinese authorities continue encouraging semiconductor investment as Beijing prioritizes technology independence.
Baidu Price Action
BIDU Price Action: Baidu shares were up 4.63% at $146.35 during premarket trading on Friday, according to Benzinga Pro data.
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