Strong First-Day Gains on STAR Market

Shanghai Enflame Technology Co. shares jumped sharply in their debut on the Shanghai Stock Exchange’s STAR Market on September 11, 2026, under the ticker 688801. The stock opened at 410 yuan, representing a 188% rise from the initial public offering price of 142.18 yuan, climbed as high as 475 yuan for a 234% gain, and closed at 397 yuan, up 179%.

The performance lifted the company’s market capitalization to approximately 171 billion yuan, or about $25.5 billion, from an IPO valuation of roughly 61.2 billion yuan, equivalent to $9.12 billion. Trading volume reached about 13.6 million shares, equal to a large share of the limited free float available on the first day.

Only about 4.16% of the enlarged share capital, or 17.9 million shares, was unrestricted for trading at the open, contributing to the sharp price moves amid heavy demand.

IPO Details and Oversubscription

Enflame sold 43.04 million new shares, representing 10% of its enlarged capital, and raised 6.12 billion yuan, or approximately $912 million. The offering ranked among the larger recent technology listings by proceeds on the Shanghai market.

Retail investor interest proved intense. Online orders exceeded the available shares by more than 4,000 times, with some reports citing oversubscription ratios above 6,000 times. More than 7 million online investor accounts participated, prompting the company to reallocate additional shares toward the retail tranche. The final allocation rate for individual investors stood at just 0.025%.

Tencent’s Central Role

Tencent Holdings remains Enflame’s largest shareholder with a 17.95% stake after the offering. The technology group also served as the company’s dominant customer, accounting for 83.79% of Enflame’s 2025 revenue.

Enflame reported 2025 revenue of 990 million yuan, or about $147 million, an increase of 37% from the prior year. Its net loss narrowed to 1.16 billion yuan. The company has indicated it aims to reach break-even or profitability in 2026 or 2027, depending on revenue growth and margins. It has forecast first-nine-months 2026 revenue between 2.3 billion and 3 billion yuan.

Position in China’s AI Chip Sector

Enflame is the final member of the group known as China’s four little dragons of AI chipmakers to list publicly, following Moore Threads, MetaX, and Biren Technology. Those peers also recorded large first-day gains, though subsequent performance has been mixed, with some shares declining substantially from their peaks.

The company develops AI accelerators for data-center and cloud workloads. Founded in 2018, it plans to use IPO proceeds primarily to advance its fifth- and sixth-generation processors and related software, seeking to close performance gaps with leading international products.

International suppliers, led by Nvidia, still held nearly 60% of China’s AI accelerator market in 2025. U.S. export restrictions have limited advanced foreign chip sales to China, while domestic policy continues to favor local alternatives. Some Chinese AI model developers have begun running workloads on domestic silicon, including chips from Enflame and other local firms.

Enflame’s debut occurred against a softer broader market, with the STAR 50 Index and CSI 300 Index both lower on the day.