Chinese AI start-up ModelBest has begun its pre-initial public offering (IPO) tutoring process for a mainland China listing, leveraging demand for compact AI models that run locally on devices such as smartphones, laptops, and in cars. The four-year-old company is relying on its small-model strategy to address China’s shortage of advanced American computing chips by training lightweight systems optimized for domestic processors. ModelBest hired Citic Securities to guide its pre-listing preparation, according to a filing Citic made to China’s securities regulator on Wednesday. ModelBest has not disclosed its targeted fundraising size, timeline, or listing location. The mandatory tutoring process takes at least three months, potentially paving the way for an IPO next year. Before formally submitting an IPO application on the mainland, a licensed sponsor—typically a securities firm or investment bank—guides the company through a structured programme focused on meeting listing standards in areas including corporate governance, risk management, audit readiness, and information disclosure practices.