Shanghai Enflame Technology shares opened at CNY 410 on Friday, nearly triple the CNY 142.18 IPO price, and climbed as high as CNY 475 before trading around CNY 430. The move valued the Tencent-backed Chinese AI-chip maker at roughly CNY 185 billion, or $27.6 billion, about three times its initial IPO valuation of CNY 61.2 billion. Enflame raised CNY 6.12 billion, or $912 million, by issuing 43 million new shares, while only 4.16% of its post-IPO shares were available for trading. Demand reflected Beijing’s effort to reduce reliance on Nvidia and other U.S. semiconductor suppliers. The online offering drew orders equivalent to more than 6,000 times the shares available, with over 7 million investor accounts participating. Enflame is one of China’s four leading domestic GPU companies, alongside Moore Threads, MetaX and Biren Technology. Tencent remains its largest shareholder with a 17.95% stake and was Enflame’s largest customer in 2025, contributing 83.79% of revenue. Revenue rose 37% to CNY 990.2 million in 2025, but the company reported a net loss of CNY 1.16 billion. IPO proceeds will fund next-generation AI processors and large-scale computing systems.