China chipmaker Enflame cofounders join billionaires after IPO rally
Shanghai Enflame Technology saw its shares surge by up to 234% on debut and finish nearly 180% higher, creating $2.1 billion fortunes for cofounders Zhao Lidong and Zhang Yalin based on their stakes. The company raised 6.1 billion yuan by selling about 43 million shares at 142.18 yuan each and plans to fund next-generation chips and software development. Enflame reported 990.2 million yuan revenue last year, a net loss of 1.2 billion yuan, and relies on Tencent for over 80% of sales, raising questions about sustainability despite strong IPO demand.
Enflame founders each hold $2.1 billion stakes after IPO rally
Context
The company listed new shares and they jumped on the first trading day. The founders became billionaires because their holdings rose in value. Investors will watch if the rally can last given the company's losses and customer concentration.
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