Yunxi Technology has submitted a confidential initial public offering application to the Hong Kong stock exchange, according to people familiar with the matter. The Guangzhou-based start-up is working with Bocom International on the deal and aims to raise "several hundred million [US] dollars".

The company, which was valued at 10 billion yuan (US$1.27 billion) in its latest private funding round, is targeting a listing by the end of this year, though the timing and size remain subject to change. High-profile backers include HSG Capital and Jack Ma’s Yunfeng Capital.

Founded in 2016, Yunxi provides end-to-end digital growth products and tools to help clients in the automotive, real estate, retail and consumer goods sectors integrate artificial intelligence into operations. The company is one of China’s nationally recognised “little giants”, a label awarded by the Ministry of Industry and Information Technology to specialised, innovative small- and medium-sized enterprises that master core technologies and hold high market shares.

A source familiar with the transaction stated that Yunxi applied to list under Chapter 18C of the Hong Kong stock exchange rules, a framework designed for high-growth firms in advanced technology sectors. Data from the Hong Kong Exchanges and Clearing showed that 14 companies had gone public under Chapter 18C by the end of March, raising a combined HK$28.4 billion (US$3.62 billion).