China's leading AI server provider xFusion has hired Citic Securities in preparation for an initial public offering, regulatory disclosure showed, adding the Huawei spin-off to a list of tech firms tapping investor fervour for AI.
The Henan province-based company signed an agreement with Citic on Dec. 31 for the IPO "tutoring" process - essentially training its executives in the finer details of an IPO - from January to April or May, showed a filing on the website of the China Securities Regulatory Commission (CSRC) on Wednesday.
In China, xFusion is the top AI server provider with sales exceeding 40 billion yuan (HK$44 billion) in 2024, the Henan government website showed.
Authorities have fast-tracked IPOs in the AI and chipmaking sectors to strengthen domestic alternatives to advanced US technology in response to US curbs on high-tech exports.
AI chipmakers including Shanghai Biren Technology (6082), Moore Threads Technology and MetaX Integrated Circuits have listed in Shanghai or Hong Kong in recent weeks and there are more in the pipeline.
Biren jumped 76 percent on its first day of trading in Hong Kong on Friday, while Moore Threads and MetaX soared 400 percent and 700 percent respectively when they debuted in Shanghai last month.
Feverish demand for AI-related stocks helped push the CSI AI Index up 67 percent in 2025.
On its website, xFusion said it is a leading global provider of computing infrastructure and services, with presence in over 100 countries and regions and customers in industries as varied as telecom, finance, transportation and the internet.
It was valued at nearly US$9 billion in 2023 by consultancy Greatwall Strategy Consultants, the government website showed.
XFusion was spun off from US-blacklisted Huawei in 2021. Its shareholders include China Telecom Group Investment and China Mobile Capital Holding, local media reported.
Reuters
