Shanghai Enflame Technology shares closed up 179% during their trading debut on the Shanghai STAR Market. The AI chipmaker raised approximately $912 million in the offering. The stock opened at 410 yuan. This price represents a sharp increase from the 142.18 yuan issue price. Intraday gains reached as high as 234%.
Retail investors oversubscribed the offering by more than 4,000 times the available shares. Tencent-backed Enflame is one of China’s four little GPU tigers competing with Nvidia. The firm supports Beijing’s strategic goal of semiconductor self-sufficiency. Other firms in this group, including Moore Threads, Biren Technology, and MetaX Integrated Circuits, also recorded strong debuts.
Enflame remains unprofitable due to high research and development costs. The company faces significant challenges in matching the performance of established international competitors.