Chinese AI server maker xFusion Digital Technologies has cleared a key Shenzhen Stock Exchange review for its planned $1.2 billion listing on ChiNext, the exchange’s growth board, according to a filing.
The exchange’s listing committee said in the filing dated November 12 that xFusion met requirements on share issuance, listing and disclosure.
xFusion plans to raise 8 billion yuan ($1.2 billion) in the proposed IPO, according to its May prospectus.
The committee asked xFusion to explain the trend in its gross margin and whether it could sustain growth in operating performance, according to the filing.
It cited changes in demand for computing capacity, capital spending by downstream customers, the company’s technology, net operating cash flow, and concentration among customers and suppliers, according to the filing.
The committee also asked whether xFusion had adequately disclosed the related risks, according to the filing.
The filing said there were no further matters for xFusion to address.
xFusion makes computing infrastructure, including AI servers, according to its prospectus. CITIC Securities is the sponsor for the proposed listing, according to the prospectus.
($1 = 6.6704 Chinese yuan renminbi)
Reuters
