Chinese AI server maker xFusion clears review for $1.2 billion Shenzhen IPO

HONG KONG, Nov 13 (Reuters) – 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 growth in its operating performance could be sustained, 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)

(Reporting by Yantoultra Ngui; Editing by Kate Mayberry)