Tencent-backed Enflame to debut in Shanghai on Friday in $912 million IPO

BEIJING, Sept 9 (Reuters) - ‌Tencent-backed AI chipmaker ​Shanghai ​Enflame Technology will make its Shanghai stock market debut on September 11, an exchange filing ‌showed on Wednesday.

Enflame, one of China's leading AI ⁠chip startups known locally as the "four little GPU dragons", raised ‌6.12 billion yuan ($912 million) by ‌selling 43 million new shares at 142.18 yuan each in the initial public offering, the filing showed.

The ​offer price values Enflame at about 61.19 billion yuan ($9.12 billion), according to the filing. Only 4.16% of ⁠Enflame's post-offering shares, or 17.9 million shares, will be available for trading ​when it lists on Shanghai's tech-focused STAR Market.

Enflame, which develops and sells chips and related ​products used in AI computing, forecast ‌a January to September net loss of 700 million yuan to 860 million yuan, ⁠narrowing from 887.8 million yuan a year earlier.

It forecast revenue of 2.3 billion yuan to 3 billion yuan, up 326% ⁠to 455%, the filing showed.

Enflame said it expects to break even ​or turn a profit in 2026 or 2027, depending on revenue and profit margins.

Tencent will hold a 17.95% stake after the ‌IPO, making it Enflame's biggest shareholder, the filing showed. Tencent was also Enflame's largest ‌end customer in 2025, accounting for 83.79% of its ⁠revenue, the filing showed.

($1 = ‌6.7077 Chinese yuan renminbi)

(Reporting ​by Xiuhao Chen and Liz Lee and Yantoultra Ngui; Editing by Jan Harvey and Alexander ‌Smith)

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