Shanghai Enflame Technology shares rose 179% on listing, valuing company at 171 billion yuan
Chinese chipmaker Shanghai Enflame Technology saw its value jump significantly after debuting on the STAR Market despite reporting ongoing net losses. Separately, AI startup Discovery Loop indicated a potential valuation around $50 billion during fundraising discussions.
Shares of Shanghai Enflame Technology increased by 179 percent after trading on Friday on the STAR Market in Shanghai. The company's market value reached approximately 171 billion yuan, up from 61.2 billion yuan at its offering price. Investors bought in at 142.18 yuan per share through the sale of 43.04 million new shares, which raised 6.12 billion yuan. Enflame never reported an annual profit since 2018. The company recorded net losses of about 1.67 billion yuan in 2023 and 1.51 billion yuan in 2024. Its 2025 revenue was 990.2 million yuan. Revenue grew from 301 million yuan in 2023 to roughly 722 million yuan in 2024. Management forecasts revenue between 2.3 billion yuan and 3 billion yuan for the first nine months of 2026, with anticipated net losses ranging from 700 million yuan to 860 million yuan for that period. The company plans to achieve break-even status or profitability by 2026 or 2027. Tencent is a shareholder in Enflame. In related developments, AI startup Discovery Loop expressed a desire for a valuation of $50 billion during fundraising talks on September 11, 2026. The California-based startup was founded this year by leaders including Jeff Dean. Its previous financing discussions involved around $1 billion at a $10 billion valuation.
