Enflame, the Chinese artificial-intelligence chip developer, soared 179% above its offering price in Friday's blockbuster Shanghai debut, lifting the value of Tencent Holdings' 17.95% stake by roughly $2.94 billion in a single day. Enflame finished at 397 yuan after selling its IPO shares for 142.18 yuan, catapulting its market capitalization from approximately 61.2 billion yuan to 171 billion yuan. The company raised 6.12 billion yuan to fund its fifth- and sixth-generation AI processors and computing systems, though it produced 990.2 million yuan of revenue in 2025 while losing 1.16 billion yuan. Tencent's holding jumped from an implied 10.99 billion yuan at the IPO price to approximately 30.69 billion yuan, a paper gain of 19.71 billion yuan, while Tencent shares closed 0.7% higher at HK$428.40. One risk towers above the celebration: Tencent generated 83.79% of Enflame's 2025 revenue, leaving the newly public chipmaker heavily dependent on its biggest shareholder and customer.
Tencent Holdings LtdTencent's 17.95% Enflame stake gained ~$2.94B in paper value on Enflame's 179% Shanghai IPO debut.
Enflame soared 179% above its IPO price, raising 6.12B yuan for AI processors, but remains heavily dependent on Tencent for 83.79% of revenue.
