The Chinese artificial intelligence chip maker Enflame closed this Friday (11) its first trading session on the STAR Market valued at about 171 billion yuan, after raising US$ 912 million in its initial public offering. The company, backed by Tencent, came to be worth nearly three times the valuation set for the IPO.
The company sold 43.04 million new shares at 142.18 yuan each, raising 6.12 billion yuan. At the end of the trading session, the shares had accumulated a gain of 179% over the offering price.
Founded in 2018, Enflame develops GPUs and computing systems for training and inference of artificial intelligence models. Part of the funds raised will be directed to the development and commercialization of its next generations of chips.
Tencent is the largest shareholder and main customer
The Tencent remains the company's largest shareholder after the offering, with a 17.95% stake, and is also its main customer. In 2025, business tied to the group accounted for 83.79% of revenue at Enflame, versus 37.77% the previous year.
The manufacturer recorded revenue of 990.16 million yuan in 2025, growth of about 37%. The company still operates in the red and ended the period with a net loss of approximately 1.16 billion yuan, below the 1.51 billion yuan recorded in 2024.
Enflame projects strong growth in 2026
For the first nine months of 2026, Enflame projects revenue between 2.3 billion and 3 billion yuan, an increase of 326% to 455% year over year. The company estimates reaching break-even or starting to post a profit between 2026 and 2027.
The debut comes amid the expansion of Chinese AI accelerator makers, driven by the country's attempt to reduce its dependence on foreign suppliers. IDC data cited by Enflame indicates that international manufacturers, led by Nvidia, still controlled about 60% of the Chinese AI accelerator market in 2025.
