Tencent-backed Enflame rises 200% on debut after raising $912 million
China's Enflame Technology surged nearly 200% in its Shanghai IPO following a capital raise of $912 million, driven by strong investor interest in domestic AI chip technology.
Tencent-backed Enflame Technology gained approximately 200% on its initial day of trading in the Shanghai stock exchange. The company raised $912 million through its initial public offering, with shares opening at 410 yuan against an IPO price of 142.18 yuan. Trading pushed the stock to a high of 475 yuan before settling near 430 yuan. Market filings show Enflame's total valuation reached about 185 billion yuan, significantly higher than the roughly 61.2 billion yuan implied by its offering price. This performance occurred despite a broader decline in Chinese equities, where the Shanghai STAR Market dropped more than 2%. Tencent holds a 17.95% stake in Enflame and contributed 83.79% of the company's 2025 revenue. Although the firm reported rapid growth, it remained loss-making entering this capital market launch.
