Shanghai – Enflame Technology Co., a Chinese artificial‑intelligence chipmaker supported by tech giant Tencent, disclosed on Monday that it expects to raise roughly 6.1 billion yuan (about $908 million) in its upcoming initial public offering on the Shanghai STAR Market.
IPO pricing and valuation
The company set its IPO price at 142.18 yuan per share, planning to sell 43 million shares. That valuation places Enflame at about 61.8 times its projected 2025 sales, according to an exchange filing. By comparison, domestic rivals Moore Threads and MetaX are trading at multiples above 160, while U.S. AI leader Nvidia trades at roughly 25.4 times its 2025 sales.
Strategic context
Enflame’s public listing comes as Beijing intensifies its push for technology self‑sufficiency. The United States has imposed export bans on high‑end chips and advanced manufacturing equipment to curb China’s AI capabilities, prompting Chinese firms to accelerate home‑grown development.
Enflame, now eight years old, aims to challenge Nvidia’s dominance in the AI chip market. The proceeds from the offering will be directed toward the production of its fifth‑ and sixth‑generation AI chips, as well as advanced AI software and hardware initiatives.
Industry landscape
Other Chinese AI chip companies, including Moore Threads Technology, MetaX Integrated Circuits, and Shanghai Biren Technology, have already completed public offerings in the past year. Enflame’s entry adds another competitor to a rapidly expanding domestic ecosystem seeking to reduce reliance on foreign technology.
Tencent, a major shareholder and Enflame’s largest customer, is expected to continue providing both capital and demand for the startup’s products, reinforcing the partnership that has helped the company reach this milestone.
Investor subscription
The company will begin accepting investor subscriptions on Wednesday, with the listing slated for the STAR Market, a venue dedicated to high‑technology and innovative firms.
Analysts note that while the valuation multiple is lower than some peers, the company’s focus on next‑generation AI chips could position it for significant growth as Chinese firms and government agencies seek domestic alternatives to foreign technology.
Exchange rate note
For reference, the article used an exchange rate of 1 U.S. dollar equals 6.7197 Chinese yuan.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
