Tencent-backed Enflame Technology stock soars 200% in Shanghai debut after raising $912 million
Enflame shares jumped nearly 200% during its IPO on Friday, raising $912 million despite Tencent's dominance in revenue.
Shanghai Enflame Technology, a company backed by Tencent, launched its initial public offering in the Shanghai STAR Market with extraordinary market interest. The company raised 6.12 billion yuan ($912 million) from investors on Friday. Stock prices opened at 410 yuan per share, compared to an IPO price of 142.18 yuan. Trading activity pushed shares as high as 475 yuan before settling around 430 yuan by the end of the session. At this closing level, Enflame's total market capitalization reached approximately 185 billion yuan. This valuation exceeds the roughly 61.2 billion yuan implied by its IPO pricing structure by more than three times. The surge occurred even though the broader Shanghai STAR Market declined over 2% and the CSI 300 Index fell 1.43%. Tencent remains the largest shareholder with a 17.95% stake post-offering. Financial reports indicate Enflame generated $912 million in proceeds from the sale of its stock while remaining loss-making. Approximately 83.79% of the company's 2025 revenue came from Tencent alone.
