Alibaba-Backed Banma Plans Hong Kong IPO Spin-Off

Alibaba is planning to spin off Banma Network Technology, its autonomous driving and smart cockpit solutions business, through an initial public offering on the Hong Kong Stock Exchange. Currently holding about 44.72% of Banma, Alibaba expects to retain over 30% post-IPO, with the spin-off aimed at enhancing Banma's operational transparency and market profile. Banma, founded in 2015 and backed by investors including SAIC Motor and Yunfeng Capital, generated approximately $114.8 million in revenue in 2024 and intends to use IPO proceeds to boost research and development, expand its market presence in China and globally, and strengthen its leadership in the automotive technology sector. The IPO is subject to regulatory approvals in Hong Kong and mainland China, with Deutsche Bank and CICC acting as joint sponsors. This spin-off would be Alibaba's first in recent years following its logistics business separation in March 2024 and comes amid a strong rebound in Hong Kong's IPO market driven by Chinese high-tech companies seeking listings. Alibaba's continued investment in autonomous driving technology, including partnerships with BMW, underscores the strategic importance of Banma within its portfolio.