Enflame's IPO has made Tencent make a huge fortune.

It's Enflame's turn now.

According to information from Investment Press, the IPO offering price of Enflame Technology on the Sci-Tech Innovation Board (STAR Market) is set at RMB 142.18 per share, with planned fundraising of over RMB 6 billion. Calculated based on this figure, the total market value after issuance is expected to exceed RMB 60 billion, ranking first among the "Four Little Dragons of Domestic GPUs".

The new share subscription feast arrives as scheduled. Today (September 2), Enflame Technology officially opened online and offline subscription on the STAR Market, with voices of "hoping to get a winning allotment" coming one after another. Rough estimates show that if Enflame's stock price rises by more than 400% on the first trading day after IPO, the floating profit of one allotment (500 shares) will exceed RMB 280,000.

Looking at the final strategic placement list, Tencent's figure appears again — it is allotted approximately 1.7471 million shares, with an allotted amount of about RMB 248 million. From the Pre-A round to the IPO, Tencent is not only Enflame's largest external shareholder but also its largest customer, whose importance is self-evident.

Enflame Launches New Share Subscription, Tencent Takes Heavy Positions

The super IPO is coming.

According to Enflame Technology's IPO prospectus for the STAR Market, the company plans to publicly issue 43.0352 million shares this time, with total estimated raised funds of RMB 6.119 billion. Among them, 10 strategic investors will receive a total of about 8.607 million allotted shares, accounting for 20% of the total issued shares.

The most notable name on the list is Shanghai Qishan Investment Co., Ltd. As a wholly-owned equity investment platform under Tencent's system, the company is allotted 1.7471 million shares with an allotted amount of RMB 248 million, and the lock-up period is 36 months. Among all strategic placement investors, its investment scale is second only to the asset management plan participated by Enflame's senior management and core employees.

The connection between Tencent and Enflame is far beyond that of ordinary investors. As early as 2018, Tencent placed bets on Enflame's multiple primary market financing rounds, holding more than 20% of Enflame's total shares, making it the largest external shareholder. At the same time, Tencent is also Enflame Technology's largest customer — contributing more than 80% of Enflame's sales revenue in 2025.

Calculated based on the RMB 60 billion post-issuance market value, the market value of Tencent's held shares exceeds RMB 10 billion.

In this strategic placement lineup, multiple industrial capitals also appear simultaneously, all with a 12-month lock-up period:

· Wuhan 1810 Enterprise Management Co., Ltd. under Xiaomi Technology, and Shenzhen Waitan Technology Development Co., Ltd. under GigaDevice, are each allotted 492,300 shares, accounting for 1.14% of the total issued shares respectively;

· Tongfu Microelectronics (TFME) and ZTE are each allotted 562,700 shares, accounting for 1.31% respectively;

· Shanghai Xinshi Times Enterprise Management Co., Ltd. under Shanghai HuaHong Group, and Shanghai EdiXi Technology Service Co., Ltd. under Shanghai Inesa Group, are each allotted 514,300 shares, accounting for 1.2% respectively;

· Relevant portfolios of the National Social Security Fund and the Basic Pension Insurance Fund also participated in the placement.

Founded in Shanghai in March 2018, Enflame was co-founded by ZHAO Lidong and ZHANG Yalin, both of whom have many years of core R&D experience at AMD. The company focuses on cloud AI chips, has independently developed and iterated four generations of architectures and five products, and built a full-stack product system covering AI chips, acceleration cards, intelligent computing systems and software platforms.

The prospectus shows that Enflame's revenue rose from RMB 301 million to RMB 990 million from 2023 to 2025, with a three-year compound annual growth rate of 81.32%, and its net loss narrowed from RMB 1.665 billion to RMB 1.164 billion. The company expects to achieve consolidated statement profitability in 2026 or 2027.

As the last company among the "Four Little Dragons of Domestic GPUs" that is about to ring the IPO bell, Enflame is highly expected. Previously, Moore Threads and Musa both saw their share prices rise by more than 400% on the first trading day after listing, and Biren Tech also recorded an increase of over 300%. Under the grand trend of domestic substitution of AI chips, the enthusiasm for subscribing for Enflame's new shares is surging.

Tencent's Big IPO Harvest Year

Looking at the broader picture, Tencent is ushering in an IPO harvest season.

The most notable case this year is none other than ChangXin Memory Technologies. This leading domestic DRAM chip company landed on the STAR Market in April this year, becoming the first hard technology new stock in the history of A-share market whose market value exceeded RMB 1 trillion right after opening, with its market value once breaking through RMB 4 trillion.

Tencent had already made its investment four years ago. In 2022, ChangXin Memory Technologies was still in the period of huge investment before mass production, nearly three years away from the mass production of its first domestic DRAM chip. At that time, most institutions "dared not invest", but Tencent injected RMB 2 billion at once. According to the prospectus, Tencent holds 901 million shares of ChangXin Memory Technologies through its holding platform Beijing Fengyi, accounting for a 1.50% stake before issuance. Calculated based on the peak market value of ChangXin Memory Technologies after listing, the floating book profit of Tencent's investment is as high as RMB 50 billion.

Before ChangXin Memory Technologies, Tencent has successively harvested two 100-billion-level IPOs of Zhipu AI and MiniMax this year. In August 2023, Tencent invested RMB 200 million in Zhipu's B4 round of financing; earlier, Tencent also made a strategic investment in MiniMax and became one of its important institutional shareholders. With the wave of AI large models sweeping the industry, the share prices of Zhipu AI and MiniMax soared after listing, bringing Tencent rich book returns on its investments.

More hard technology IPOs are on the way.

Sinovent, an innovative drug company based in Suzhou that filed for IPO according to the fifth set of standards of the STAR Market, also has Tencent behind it. In 2017, QIANG Jing, who had a background in investment banking, led the team to cross over to the biomedical field to start a business. Over the years, its R&D pipelines cover multiple major disease fields such as anti-tumor and anti-infection. During its development, Tencent has continued to accompany its growth and is currently the fourth largest shareholder of the company. This week, Sinovent also launched online subscription, getting closer to ringing the IPO bell.

There is also Yunbao Intelligence, known as the "first domestic DPU stock". As early as April 2021, when Yunbao Intelligence was only 8 months old, it completed an angel round of financing with a luxurious lineup — co-led by Tencent, HSG and Shenzhen Venture Capital Group. After that, Tencent increased its investment in multiple rounds. Before IPO, Tencent and its related parties became the single largest shareholder with a 22.54% stake, even higher than the shareholding ratio of its founder XIAO Qiyang.

After sorting out, Tencent's investment focus over the years has shifted from consumer internet to hard technology, and it has been particularly active in the fields of AI computing power, GPU chips and intelligent computing infrastructure, with its investments concentrating on realizing returns through IPOs.

This is undoubtedly a watershed moment. The tide of AI is surging, and tech giants have long placed their bets on the most core battlefield. Will internet giants miss the next era? The questions raised in those years are now gradually getting their answers.

This article is from the WeChat Official Account "Investment Press" (ID: pedaily2012), written by ZHOU Jiali, authorized for release by 36Kr.