Tencent-Backed Enflame Sees Record Demand in China IPO
Investors are turning to domestic chipmakers following US sanctions, and the Tencent-backed AI chip startup has been met with massive interest.
Tencent-backed Chinese AI chip maker Shanghai Enflame Technology received investor orders worth 6,109 times the available shares in the online portion of its initial public offering in Shanghai.
Overwhelming Online Demand
According to a stock exchange filing by Shanghai Enflame Technology, the online portion of the company's initial public offering in Shanghai received record-level investor applications.
Investor Shift
Market participants are showing a major shift toward startups in this sector to capitalize on the opportunities presented by domestic alternatives following the imposed export restrictions.
Share Reallocation
Facing overwhelming demand and orders coming from millions of accounts, the company transferred shares from the offline tranche to increase the online sales proportion.
Market Position
Ranking among startups of vertical importance in the sector, the company draws attention with its strong partnership structures despite not having generated a profit to date.
IPO Details
While the company aims to raise funds at the determined price per share, it plans to use the proceeds to develop next-generation chip technology-related hardware and software.