Shanghai Enflame Technology Co. completed an initial public offering, raising ¥6,12 billion, which is approximately $912 million. Following the debut, the company's share price increased by 179%. The offering saw high demand from retail investors, who requested 6,109 times more shares than initially allocated. Consequently, the company sold 43.04 million shares, representing 10% of its outstanding stock.
The company's market capitalization reached ¥171 billion, or $25,5 billion. Enflame, founded in 2018, specializes in AI chips for data centers. Its latest product, the L600, was released in July and supports both training and inference workloads. It utilizes HBM3 memory with a bandwidth of 3.6 terabits per second and a 114-gigabyte RAM module.
Financial performance shows significant growth, with 2025 revenue reaching ¥990,2 million, a 37% increase. For the first nine months of this year, revenue is estimated to be between ¥2,3 billion and ¥3 billion. Tencent Holdings Inc. remains the largest customer, contributing over 83% of 2025 revenue, and is the largest shareholder with a 17,95% stake.
Last year, Enflame reduced its losses by 25% to ¥1,16 billion, with expectations to reach profitability by late 2026 or 2027. IPO proceeds are earmarked for the development of fifth- and sixth-generation accelerators. Enflame is the fourth Chinese AI chip developer to go public in the last year, following Biren, MetaX, and Moore Threads.
