Tencent-Backed Enflame IPO Attracts High Demand, Seeks Over $900M

By EC Assets · Published 2 September 2026

Tencent-backed Enflame Technology is nearing a public market debut following strong demand for its initial public offering. The AI chipmaker's IPO drew 6,109 times online demand. Enflame Technology received approval for an initial public offering. Shanghai Enflame Technology Co. backed by Tencent Holdings Ltd. seeks to raise approximately 6.12 billion yuan ($911 million) in its IPO. The company is one of the "four little dragons" in the Chinese chipmaking sector. Enflame Technology aims to raise around 6 billion yuan ($892.2 million) in its Shanghai IPO. Subscriptions for the IPO on Shanghai's STAR Market opened on September 2. The public valuation of Enflame's IPO highlights investors' willingness to pay for strategic scarcity in the chip market. The company's valuation stands at 62 times sales. This validates Tencent's investment in the chip sector. Enflame is an AI chipmaker based in Shanghai. Its IPO represents a significant step as China's AI chip wave grows. This article is intended for informational purposes only. It does not constitute investment advice.