On August 21st, Alibaba Group announced plans to spin off its intelligent cockpit solution provider Zebra Network Technology Co., Ltd. and list it independently on the main board of the Hong Kong Stock Exchange. Zebra Network has submitted a listing application to the Hong Kong Stock Exchange and plans to conduct a global offering, including a Hong Kong public offering and an international offering.
Zebra Network is mainly engaged in the development of intelligent cockpit solutions, providing system level OS solutions, AI full stack end-to-end solutions, and in vehicle platform services. The company will no longer be included in the consolidation scope of Alibaba Group from December 27, 2024, and currently Alibaba holds approximately 44.72% of its shares. After completing the equity structure adjustment and spin off, Alibaba will continue to hold over 30% of the shares in Zebra Network and use the equity method for accounting treatment.
The announcement states that the spin off listing will help better reflect the value of Zebra Network, improve its operational and financial transparency, and enable it to independently enter the capital market for financing. The Hong Kong Stock Exchange has granted Alibaba an exemption from providing existing shareholders with guaranteed quota rights for Zebra Network shares. The spin off listing still requires approval from the Listing Committee of the Hong Kong Stock Exchange and completion of relevant filings with the China Securities Regulatory Commission.
