Baidu’s chip unit Kunlunxin is targeting a $50 billion Hong Kong IPO and asked investors to buy its semiconductors
TL;DR
Baidu’s Kunlunxin targets a $50B Hong Kong IPO and asked investors to commit to buying its chips, blurring the line between shareholder and customer.
Baidu’s AI chip unit Kunlunxin is planning to go public in Hong Kong at a target valuation of $50 billion, The Information reported on Sunday. In an unusual twist, the company asked prospective IPO investors to also commit to purchasing its semiconductors, according to the report.
Reuters could not independently verify the report. The $50 billion target represents a dramatic increase from the $14.7 billion valuation that the South China Morning Post reported Kunlunxin was seeking as recently as this month, and from the HK$100 billion (roughly $12.8 billion) figure TrendForce cited in May.
The practice of tying chip purchase commitments to IPO allocation, if confirmed, would blur the line between investor and customer in a way that echoes the “circular financing” structures...
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