Chinese telecom equipment maker Huawei Technologies Co Ltd wants to conduct an initial public offering (IPO) to establish its credibility as it targets large contracts in major international markets.

The Chinese telecoms giant is now in talks with a number of investment banks seeking advice on how to go about its plans, the Wall Street Journal reported.

Huawei had wanted to dip its hands into the international markets such as Australia and the U.S., but both countries rejected the Chinese firm, citing security reasons. The company has been alleged to have connections with the military branch of China.

This is the second time that Huawei thought of going the IPO route if only to prove the allegations were false. It has denied such allegations, even offering to open the company to third parties for inspection.

Huawei believed that if it does the IPO, the undertaking will give its company the transparency and credibility needed to venture into the international markets, and eventual acceptance from those targeted markets.

The report did not disclose if Huawei had chosen a partner investment bank, but talks had delved into how and where it could list its shares as well as the probable types of disclosures it would need to issue to smooth the progress of its IPO plan.

Still, an unidentified WSJ source said it is unlikely Huawei would progress its latest IPO plan on the basis of fulfilling those disclosures.

The report noted that Huawei, the world's second-largest provider of telecom equipment, targets to make U.S. listing over Hong Kong or London.

"If and when such a thing happened it would be when it makes commercial sense," Huawei spokesman William Plummer told the WSJ about the spreading market rumors.