Alibaba has received an initial go-ahead from the Hong Kong stock exchange for the proposed spin-off, the company said in a statement on Thursday. The stake held by the Hangzhou-based conglomerate in Banma will drop to 30 per cent from the current 44.72 per cent after the IPO, Alibaba said.
Details of the spin-off, including the financial size and structure of Banma’s IPO, have not been finalised, while the overall plan would be subject to regulatory approvals in Hong Kong and mainland China, said Alibaba, the parent company of the Post.
“The proposed spin-off should better reflect the value of Banma Group on its own merits and increase its operational and financial transparency,” Alibaba said. “Banma’s distinctive automobile system solutions business would be appealing to an investor base with a sector investment focus.”
For Banma, which began to embed Alibaba’s operating system AliOS in 2016 for smart vehicles to drive autonomously, the IPO would enhance its profile among customers, suppliers and potential strategic partners, gaining it more business and access to the equity and debt capital markets, the e-commerce giant added.
