Enflame Technology, a Shanghai-based AI chipmaker backed by Tencent Holdings, rose 188% on its Shanghai trading debut on September 11.

The stock’s debut gave the company a market capitalization of 176.4 billion yuan (US$26.3 billion) amid strong demand for Chinese AI chips.

The shares opened at 410 yuan (US$61), up from an issue price of 142.18 yuan (US$21).

Enflame raised about 6.1 billion yuan (US$913 million) by selling 43.04 million shares in one of mainland China’s biggest tech listings this year.

The retail portion of the initial public offering was oversubscribed by 4,073x, leaving individual investors with an allocation rate of 0.025%.

The listing was on Shanghai’s STAR Market, where new stocks have no price limits in their first five trading days before a 20% daily price band applies.

Enflame’s debut also came as US export controls restrict sales to China of advanced Nvidia AI chips such as the A100 and H100, increasing pressure on Chinese companies to use domestic alternatives.

🔗 Source: South China Morning Post

Recent Enflame Technology developments