Enflame Shares Surge 200% in Shanghai AI Chip Debut

Shanghai Enflame Technology shares surged more than 200% in their trading debut on Friday, September 11, marking a dramatic entrance for the Tencent-backed artificial intelligence chipmaker as China pushes to develop domestic alternatives to U.S. semiconductor suppliers. The stock opened at 410 yuan per share, nearly triple its initial public offering price of 142.18 yuan, and climbed as high as 475 yuan before settling near 430 yuan. The debut valued the company at approximately 185 billion yuan, or about $27.6 billion, more than triple its IPO valuation of roughly 61.2 billion yuan. Enflame raised 6.12 billion yuan, or about $912 million, through the sale of 43 million new shares on the Shanghai Stock Exchange's STAR Market. The offering drew extraordinary investor demand, with online orders exceeding available shares by more than 6,000 times and over 7 million investor accounts participating. Only 4.16% of the company's post-IPO shares were available for trading on debut, creating a limited float that contributed to the sharp price increase.