Tencent-backed Enflame nearly triples on its Shanghai debut

Shanghai Enflame Technology closed up 179% on its STAR Market debut after raising 6.12 billion yuan, while remaining unprofitable.

A confirmed China-chip listing on a day the rest of the market fell tells you what investors paid, not whether the chips replace restricted GPUs. The close is a real price. The product claim is unproven.

Reuters reported that Shanghai Enflame Technology (ticker 688801.SS) closed up 179% — nearly a triple — on its STAR Market debut. STAR is Shanghai’s tech board. The company raised 6.12 billion yuan ($912 million) in its IPO (initial public offering), the first sale of shares to the public.

Reuters: Enflame sold 43.04 million new shares, 10% of enlarged capital — one-tenth of the company after the new shares were added. The offer price implied about 61.2 billion yuan of market value. The 397-yuan close implied about 171 billion yuan, nearly three times that listing-day valuation.

The same Reuters dispatch said China’s STAR 50, an index of larger STAR names, fell 1% and the CSI 300, a mainland large-cap index, dropped 0.84% that session. The pop was this stock, not the broader market.

CNBC, same cycle: Enflame is the last of China’s “four little dragons” of AI chipmaking to list. It plans to spend proceeds on next-generation chips. It reported 990 million yuan of 2025 revenue while still unprofitable — sales without a profit.