Enflame is one of a group of Chinese AI chip startups sometimes called the “four little GPU dragons”, alongside Moore Threads, MetaX and Biren Technology.
Enflame sold 43.04 million new shares, equal to 10 per cent of its enlarged share capital, on Shanghai’s tech-focused STAR Market.
Its offer price gave it a market value of about 61.2 billion yuan, according to its filing on Wednesday.
At around 430 yuan on Friday, Enflame’s market value had jumped to roughly 185 billion yuan, more than triple the valuation at the IPO price.
Tencent is Enflame’s largest shareholder, with a 17.95 per cent stake after the offering, and was also the company’s largest customer before the listing.
Sales linked to Tencent accounted for 83.79 per cent of Enflame’s 2025 revenue, its prospectus showed.
Enflame has yet to turn a profit. Its net loss narrowed to 1.16 billion yuan in 2025 from 1.51 billion yuan a year earlier, while revenue rose 37 per cent to 990.2 million yuan, the prospectus showed.
The company forecast revenue of 2.3 billion yuan to 3 billion yuan for the first nine months of 2026, alongside a net loss of 700 million yuan to 860 million yuan.
It expects to break even or become profitable in 2026 or 2027, depending on revenue growth and margins, the filing showed.
The company plans to use most of the proceeds to develop its fifth- and sixth-generation AI chips, related software and large-scale computing systems, according to its prospectus.
