xFusion Digital Technologies cleared a key Shenzhen Stock Exchange review for its planned listing on the ChiNext board. The Chinese AI server maker plans to raise 8 billion yuan (US$1.2 billion) in the proposed IPO. Its May prospectus outlined the offering.
What the review found
The exchange's listing committee said xFusion met requirements on share issuance, listing, and disclosure. The decision was dated November 12. The review represented a key step for the ChiNext listing.
Regulator questions
The committee asked xFusion to explain its gross margin trend and whether operating performance could be sustained. It cited demand for computing capacity and capital spending by downstream customers. It also pointed to the company's technology, net operating cash flow, and customer and supplier concentration.
What xFusion does
xFusion makes computing infrastructure, including AI servers. The company sells systems used by customers that invest in computing capacity. CITIC Securities is the sponsor for the proposed listing.
The filing said there were no further matters for xFusion to address. The ChiNext board is the Shenzhen exchange's growth board. The listing review is now complete.
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