Chinese AI chip developer Enflame raises $912M in IPO
Shares of Shanghai Enflame Technology Co. closed 179% higher today following an initial public offering that raised 6.12 billion yuan, or about $912 billion.
The listing drew particularly strong demand from retail investors. Such investors ordered 6,109 times more shares than the number Enflame had made available as part of its retail allocation. The company grew the allocation in response and sold a total of 43.04 million shares, or about 10% of its outstanding stock.
Enflame’s closing price gives it a market capitalization of 171 billion yuan, which equals $25.5 billion.
Enflame launched in 2018 to develop artificial intelligence chips for data centers. The company debuted its first accelerator, the DTU 1.0, the following year. It featured 14 billion transistors made using GlobalFoundries Inc.’s 12-nanometer node. Enflame developed three more iterations of its architecture over the subsequent years.
