Shares in Shanghai Enflame Technology closed 179% above their offer price on their first day of trading on Shanghai’s Star Market on Friday. The Tencent-backed AI chipmaker had raised about 6.12bn yuan ($911m) in its initial public offering, Bloomberg reported.
The stock opened at 410 yuan, against an IPO price of 142.18 yuan. It rose as much as 234% to 475 yuan during the day before closing at 397 yuan, Ann Cao reported for the South China Morning Post. That gave Enflame a market value of 170.9bn yuan ($25.5bn), according to the SCMP. Reports published during the session gave other figures: CNBC put the gain at 206%, and Business Insider at about 200%.
The wider market fell. The Star 50 Index dropped 1% on Friday and the benchmark CSI 300 Index 0.8%, the SCMP reported.
Demand for the shares
Retail investors bid for 4,073 times the shares available to them, according to Enflame’s filing to the exchange, cited by the SCMP. About 7 million online investors ordered 42.1bn shares. Individual investors got an allocation rate of 0.025%, one of the lowest in mainland China this year. The robot maker Unitree had a rate of 0.018%, the SCMP reported.
