Key facts
- Chinese AI chipmaker Enflame Technology is pursuing an IPO on Shanghai's STAR Market.
- The company aims to raise approximately 6.1 billion yuan ($908 million) by selling 43 million shares.
- Enflame Technology set its IPO price at 142.18 yuan per share.
- The IPO drew investor orders worth 6,109 times the shares available in the online portion.
- Enflame Technology is backed by Tencent and is considered one of China's leading AI chip startups.
Shanghai Enflame Technology, a Chinese AI chip designer backed by Tencent, has seen overwhelming investor interest in its initial public offering on Shanghai's STAR Market. The company drew orders worth 6,109 times the number of shares available in the online portion of its offering. This surge in demand reflects investor confidence in China's push for domestic AI chip alternatives amid U.S. export restrictions. Enflame, one of China's 'four little GPU dragons', aims to raise approximately 6.1 billion yuan ($908 million) by selling 43 million shares at 142.18 yuan each. Despite not yet being profitable, the company benefits from significant backing by Tencent, its largest customer and a major shareholder. To accommodate the excess demand, Enflame reallocated 3.4 million shares to the online sale, resulting in a winning rate of 0.025% for online investors.