Archive · 2 Sep 2026
Tencent-Backed Enflame IPO Draws Massive Investor Demand
Enflame is a Chinese company that makes computer chips for artificial intelligence.
It is supported by Tencent, a large Chinese technology company.
Enflame offered some of its shares to the public in an IPO.
Many investors wanted the shares, placing orders for more than 6,000 times the available online supply.
Because demand was so high, the company moved more shares into the online sale.
Only about 0.025% of online investors are expected to receive shares.
Enflame has not yet made a profit.
It hopes to use the money raised to build newer AI chips and compete with foreign suppliers.
Shanghai Enflame Technology attracted orders for 6,109 times the shares available in its online IPO tranche.
More than 7 million online investor accounts placed orders, prompting Enflame to shift 3.4 million shares from the offline tranche.
The final online investor winning rate was 0.025%, with results due Friday.
Enflame priced the IPO at 142.18 yuan per share and aims to raise about 6.1 billion yuan.
The company plans to use the proceeds to develop and produce its fifth- and sixth-generation AI chips and related hardware and software.
- Who
- Shanghai Enflame Technology, backed by Tencent, and more than 7 million online investor accounts.
- What
- Enflame’s Shanghai IPO attracted online orders worth 6,109 times the available shares.
- When
- The demand figures were disclosed in a Wednesday exchange filing; IPO results are due Friday.
- Where
- The IPO is taking place on Shanghai’s technology-focused STAR Market in China.
- Why
- Investors are betting that China’s drive to develop domestic alternatives to U.S. chip suppliers will create opportunities for Chinese AI-chip makers.
- IPO price
- 142.18 yuan per share
- Planned fundraising
- About 6.1 billion yuan, or approximately $908 million
- Shares offered
- 43 million shares
- Online demand
- 6,109 times the available online portion
- Online allocation
- Raised from 6.89 million shares, or 20%, to 10.33 million shares, or 30%, after the strategic placement
- Online winning rate
- 0.025%
- Profitability
- Enflame has not yet made a profit