Chinese AI server leader xFusion hires investment bank in first step towards listing
The Chinese authorities have fast-tracked IPOs in the AI and chipmaking sectors due to US’ curbs on high-tech exports
[SHANGHAI] China’s leading artificial intelligence (AI) server provider xFusion has hired a Chinese full-service investment bank, to prepare for an initial public offering (IPO), regulatory disclosure showed.
The Henan province-based company signed an agreement with Citic Securities on Dec 31 for the IPO “tutoring” process, showed a filing on the website of the China Securities Regulatory Commission (CSRC) on Wednesday (Jan 7).
Citic will essentially train xFusion’s executives in the finer details of an IPO, from January to April or May. This adds the Huawei spin-off to a list of tech firms tapping into investor fervour for AI.
The Henan government website showed that xFusion is the top AI server provider in China, with sales exceeding 40 billion yuan (S$7.3 billion) in 2024.
In response to the US’ curbs on high-tech exports, the Chinese authorities have fast-tracked IPOs in the AI and chipmaking sectors, to strengthen domestic alternatives to advanced US tech.
AI chipmakers, including Shanghai Biren Technology, Moore Threads Technology and MetaX Integrated Circuits, have listed in Shanghai or Hong Kong recently, and there are more in the pipeline.
Biren jumped 76 per cent on its first day of trading in Hong Kong on Friday, while Moore Threads and MetaX soared 400 per cent and 700 per cent, respectively, when they debuted in Shanghai in December.
The feverish demand for AI-related stocks helped to push the China Security Index (CSI) AI Index up 67 per cent in 2025.
On its website, xFusion said that it is a leading global provider of computing infrastructure and services, with a presence in over 100 countries and regions, with customers in industries as varied as telecommunication, finance, transportation and the Internet.
It was valued at nearly US$9 billion in 2023 by consultancy Greatwall Strategy Consultants, the government website showed.
The company was spun off from US-blacklisted Huawei in 2021. Its shareholders include China Telecom Group Investment and China Mobile Capital, local media reported. REUTERS
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