Tencent-backed chipmaker Enflame nearly triples in its Shanghai debut
Shares in Enflame, a Tencent-backed maker of AI chips, closed 179% above their offer price on their Shanghai debut. The company raised about $911m in its initial public offering, according to Bloomberg.
Key Points:
- Enflame’s stock opened at 410 yuan, far surpassing the IPO price of 142.18 yuan.
- It rose as much as 234% during trading before closing at 397 yuan.
- This gave Enflame a market value of approximately $25.5 billion.
Demand for shares was overwhelming, with retail investors bidding for shares 4,073 times the amount available, according to the South China Morning Post (SCMP).
Who are the people behind Enflame?
Founders Zhao Lidong and Zhang Yalin both have backgrounds at AMD, with Zhao having worked in Silicon Valley for two decades. They chose to differentiate their chip designs from Nvidia’s offerings.
Tencent’s Role:
Tencent holds a 20% stake in Enflame and is its largest customer, accounting for 84% of its 2025 revenue. Enflame’s chips power various applications within Tencent’s platforms, including chatbots and recommendation systems.
Financials:
Enflame recorded revenue of 990 million yuan in 2025, up from 722 million yuan the previous year. While they incurred a net loss of 1.16 billion yuan in 2025, this was narrower than the prior year’s deficit. The company forecasts breaking even in Q3 2026.