Chinese AI chipmaker Shanghai Enflame Technology drew investor orders worth 6,109 times the shares available in the online portion of its Shanghai initial public offering, an exchange filing showed on September 2.

The demand reflected investor bets that Beijing’s push for domestic alternatives to the US chip suppliers would benefit Chinese AI chipmakers.

After receiving orders from more than 7 million online investor accounts, Enflame moved 3.4 million shares from the offline tranche to the online sale.

That increased the online allocation to 10.33 million shares, or 30% of the offering after strategic placement, and left a final online winning rate of 0.025%.

Founded eight years ago, Enflame remains unprofitable and aims to raise about 6.1 billion yuan (US$908 million) by selling 43 million shares at 142.18 yuan (US$21) each on Shanghai’s STAR Market.

The company said it would announce the results on Friday.

The offering comes as the US has restricted some advanced Nvidia AI chip sales to China, while certain exports were later allowed under license.

🔗 Source: Reuters

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