Prime Highlights
- Enflame Technology will open subscriptions for its $892.21 million IPO on Shanghai’s STAR Market in the first week of September.
- The Tencent-backed chipmaker will issue shares representing a 10% stake in its enlarged share capital.
Key Facts
- Enflame is a Shanghai-based AI chipmaker founded in 2018, grouped among China’s “four little GPU dragons.”
- Enflame plans to use IPO proceeds to develop its fifth- and sixth-generation AI chips.
Background
Chinese AI chipmaker Enflame Technology will open share subscriptions in the first week of September for its 6 billion yuan ($892.21 million) initial public offering on Shanghai’s STAR Market, a regulatory filing showed late this week. The company, backed by Tencent Holdings, will issue 43.04 million new shares, representing a 10% stake in its enlarged share capital of roughly 430 million shares. Preliminary price consultations are set to begin in the last week of August, according to the filing.
Of the total offering, 8.61 million shares have been allocated to strategic investors, while 27.54 million shares and 6.89 million shares have been set aside for institutional and retail investors, respectively.
Founded in 2018 and based in Shanghai, Enflame is grouped alongside Moore Threads, MetaX, and Biren Technology as one of China’s “four little GPU dragons.” The other three firms have already gone public over the past year, benefiting from strong global interest in semiconductor companies.
Enflame said it plans to use the proceeds to develop and commercialise its fifth- and sixth-generation AI chips, along with advanced AI hardware and software projects.
China’s onshore technology listings are heading toward their strongest year since 2023, as Beijing pushes to boost chip and AI listings amid its technology rivalry with the United States. However, a roughly 45% slump in humanoid robot maker Unitree’s shares since its Shanghai debut has raised concerns about overheated valuations in the AI and robotics sector.
CITIC Securities is leading the underwriting for Enflame’s offering, alongside Guotai Haitong Securities and GF Securities as joint lead underwriters.