By Tracy Qu
Alibaba-backed smart cockpit solutions company Banma Network Technology is planning an initial public offering in Hong Kong, adding to the city's busy deal pipeline.
Alibaba said Thursday that it holds a 44.72% stake in Banma with equity method accounting. It expects to retain more than 30% of the company after the listing.
Deutsche Bank and CICC are among banks acting as joint sponsors of the offering. The deal will also need to filed with the China Securities Regulatory Commission to go ahead, according to Alibaba's filing.
Founded in 2015, Banma develops intelligent automobile operating systems for auto industry. The company generated revenue of 823.79 million yuan, equivalent to $114.8 million, in 2024. SAIC Investment Management, controlled by state-owned automaker SAIC, is also a major shareholder.
Banma Network Technology said in a filing that it plans to use the IPO's proceeds to strengthen its research and development, solidify its leadership in China, expand into the global market, and for other corporate purposes.
Hong Kong's IPO activity has been heating up, as it logged its strongest first-half IPO performance since 2021. Funds raised during the first six months of 2025 have increased sevenfold compared with the same period in 2024, according to a KPMG report.
The rebound has been fueled by Chinese companies seeking secondary listings, and a surge of high-tech companies looking to tap the Hong Kong market, the report showed
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
August 20, 2025 21:03 ET (01:03 GMT)
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