Tencent-Backed Enflame Shares Triple in Shanghai Debut

Tencent-backed Shanghai Enflame Technology surged roughly 200% in its Shanghai debut after raising 6.12 billion yuan ($912 million) through an IPO on the STAR Market. Shares opened at 410 yuan against an offer price of 142.18 yuan and reached as high as 475 yuan, lifting the company’s market value to about 185 billion yuan, more than triple its IPO valuation. The listing reflects growing investor demand for Chinese AI-chip makers as Beijing seeks domestic alternatives to Nvidia amid U.S. restrictions on advanced semiconductor access. Enflame plans to use most of the proceeds to develop next-generation AI chips, software and computing systems, but it remains unprofitable and has forecast substantial losses before potentially reaching break-even or profitability in 2026 or 2027. Tencent will retain a 17.95% stake and accounted for 83.79% of Enflame’s 2025 revenue, underscoring the company’s dependence on its largest shareholder and customer.