(Nov 10): Alibaba Group Holding Ltd’s in-house chip design unit T-Head has filed for a Hong Kong listing, moving ahead with a proposed spin-off of a business that supplies data-centre processors in China.

The Hong Kong stock exchange has cleared Alibaba to proceed with the move and T-Head submitted its listing application on Sept 11, Alibaba said in an exchange filing on Tuesday. The size and structure of the offering haven’t been finalised.

T-Head, wholly owned by Alibaba, is a provider of full-stack data-centre chips that enable system-level computing solutions in China, according to the filing. It is expected to remain a subsidiary of Alibaba after the listing.

Alibaba said the spin-off would allow investors to value T-Head separately from the rest of the group and could attract investors seeking dedicated exposure to the chip business. A separate listing would also give T-Head direct access to equity and debt capital markets and enhance its ability to secure bank financing, according to the filing.

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