Alibaba (BABA) plans to spin off its T-Head chip unit in Hong Kong. Shareholders won't get guaranteed shares.

Key points Hong Kong lets Alibaba proceed with T-Head spin-off Alibaba shareholders won't get guaranteed access to T-Head shares What T-Head's Hong Kong IPO could raise Alibaba (BABA) has received permission from the Hong Kong Stock Exchange to proceed with a proposed spin-off of T-Head, its data-center chip unit, the company said on November 10. T-Head designs the Zhenwu V900 AI processor. Alibaba's U.S.-listed shares were down about 1.1% at $104.23 as of 10:19 a.m. ET. The exchange also waived a rule that normally gives a parent company's shareholders an assured entitlement to shares in a spun-off business. Alibaba owns all of T-Head and expects it to remain a subsidiary after the listing. T-Head submitted a confidential listing application on September 11, which Alibaba disclosed on November 10. The listing still needs approval from the exchange's listing committee and a completed filing with China's securities regulator.

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