Tencent-backed Enflame to debut in Shanghai on Friday in $912 million IPO

Tencent-backed (0700) AI chipmaker Shanghai Enflame Technology will make its Shanghai stock market debut on September 11, an exchange filing showed on Wednesday.

Enflame, one of China's leading AI chip startups known locally as the "four little GPU dragons", raised 6.12 billion yuan (HK$7.15 billion) by selling 43 million new shares at 142.18 yuan each in the initial public offering, the filing showed.

The offer price values Enflame at about 61.19 billion yuan, according to the filing. Only 4.16 percent of Enflame's post-offering shares, or 17.9 million shares, will be available for trading when it lists on Shanghai's tech-focused STAR Market.

Enflame, which develops and sells chips and related products used in AI computing, forecast a January to September net loss of 700 million yuan to 860 million yuan, narrowing from 887.8 million yuan a year earlier.

It forecast revenue of 2.3 billion yuan to 3 billion yuan, up 326 percent to 455 percent, the filing showed.

Enflame said it expects to break even or turn a profit in 2026 or 2027, depending on revenue and profit margins.

Tencent will hold a 17.95 percent stake after the IPO, making it Enflame's biggest shareholder, the filing showed. Tencent was also Enflame's largest end customer in 2025, accounting for 83.79 percent of its revenue, the filing showed.

Reuters

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