Will Chinese AI chip designer Enflame’s Shanghai IPO be another blockbuster?
Tencent-backed Enflame’s listing on the Star Market could follow successful recent flotations from peers Moore Threads, MetaX and Biren
Artificial intelligence chip designer Enflame Technology on Wednesday entered the inquiry stage of its initial public offering, moving a step closer to joining a string of high-profile semiconductor sector listings on the Shanghai Stock Exchange’s technology-focused Star Market.
The listing of the Shanghai-based unicorn is the next closely watched chip offering, as investor appetite for domestic AI chipmakers remains strong.
In this explainer, the South China Morning Post examines the next steps in the company’s fundraising process and why this start-up is keenly watched.
Why does Enflame’s IPO matter?
A number of Chinese chip designers, positioned as challengers to US giant Nvidia, including Moore Threads, MetaX and Biren Technology, have gone public in recent months, gaining momentum from the rising capital market in Hong Kong and the mainland. All of them are now trading several times above their IPO prices.
Cambricon Technologies, another AI chip designer that listed in 2020, has been among the hottest stocks over the past year.
The stock gains of these companies come against the backdrop of Beijing’s push for technological self-reliance, with semiconductors at the centre of the efforts.
With Enflame’s listing process reaching a key milestone, the deal is likely to go down well with investors as more companies look to tap the stock market.
