Enflame Soars 188% on Shanghai Debut Amid AI Chip Boom

Enflame Technology, backed by Tencent Holdings and a major challenger to Nvidia in China's artificial intelligence chip market, saw its share price surge 188% on its Shanghai trading debut. The company opened at 410 yuan, significantly higher than its issue price of 142.18 yuan. This marked the final public listing for one of China's 'four little dragons' in the sector, with Enflame now boasting a market capitalisation of 176.4 billion yuan (US$26.3 million). The strong performance reflects continued investor appetite for domestic AI chip champions, driven by Beijing's push for semiconductor self-sufficiency amidst US export restrictions.

The company raised about 6.12 billion yuan through the sale of 43.04 million shares, valuing Enflame at approximately 61 billion yuan before trading began. The retail portion of its initial public offering (IPO) was oversubscribed by a staggering 4,073 times, with individual investors submitting orders for 42.1 billion shares.