XFusion, a leading Chinese AI server provider and spin-off from Huawei, has reportedly hired Citic Securities, one of China’s largest investment banks, to prepare for an initial public offering (IPO). 

According to Reuters, the company signed an agreement with Citic Securities at the end of last year to begin the ‘tutoring’ process required for a domestic listing in China. 

The process requires the Henan-based company to train its executives on the details of a stock market listing.

The process is scheduled to take place from January to May, according to a document seen by Reuters and published on Wednesday on the China Securities Regulatory Commission (CSRC) website.

According to data provided by the Henan government, the company has positioned itself as one of the leading suppliers of AI servers with over $5.7 billion in sales in 2024.

xFusion describes itself as a global provider of IT infrastructure and services, operating in over 100 countries and regions and serving customers in the telecommunications, finance, transport and internet sectors.

The company was valued at nearly $9 billion in 2024 by Greatwall Strategy Consultants, with the valuation highlighting the company's rapid rise and strong presence in the Chinese AI server market.   

Current shareholders include China Telecom Group Investment and China Mobile Capital Holding.  

Chinese authorities have accelerated IPOs in the AI and chip manufacturing sectors to strengthen domestic alternatives after the US imposed restrictions on high-tech exports.

Several AI chip manufacturers, including Shanghai Biren Technology, Moore Threads Technology and MetaX Integrated Circuits, have already been listed in Shanghai or Hong Kong in recent weeks.

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