Tencent-backed Enflame Technology, a Shanghai-based developer of AI chips and software for cloud data centers, has won approval for an initial public offering on Shanghai’s STAR Market.

Its prospectus said it plans to raise 6 billion yuan ($888 million) by selling 10% to 15% of its shares.

Tencent holds a 20% stake in Enflame and accounted for 84% of the chipmaker’s 2025 revenue, up from about 38% in 2024.

Enflame said the IPO proceeds will support the development and production of AI cloud chips and related software.

The approval does not mean trading can start immediately. STAR Market candidates still need to register with the China Securities Regulatory Commission before pricing and subscription can begin.

Enflame’s 2025 net loss narrowed to 1.2 billion yuan (US$178 million) from 1.5 billion yuan (US$222 million) a year earlier, and it forecast a first-half loss of about 600 million yuan (US$88.8 million).

First-half revenue is expected to more than triple year on year to 10.6 billion yuan (US$1.57 billion) to 11.5 billion yuan (US$1.7 billion).

The planned listing comes amid a wave of fundraising and IPOs among Chinese AI companies.

🔗 Source: Bloomberg

Recent Enflame Technology developments