(Yicai) Dec. 5 -- Shares of Moore Threads Technology, which designs graphics processing units and is often called “China’s Nvidia,” surged more than five times when they started trading on the Shanghai stock market today after a CNY8 billion (USD1.1 billion) initial public offering.

Moore Threads [SHA: 688795] popped 469 percent to CNY650 (USD91.94) per share at the open on the Nasdaq-style Star Market, versus an offering price of CNY114.28 (USD16.16). The stock closed at CNY600.50, a 425 percent gain, giving the firm a market capitalization of about CNY282 billion (USD39.9 billion).

Fueled by the artificial intelligence boom and China’s push for chip self-sufficiency, Moore Threads’ successful market debut paves the way for listings by China’s other three GPU “tigers” -- MeTax Technology, Biren Technology, and Enflame Technology -- following regulatory reforms announced in June to fast-track innovators that are yet to turn a profit.

China’s securities regulator approved MeTax’s Shanghai filing on Nov. 13, while Biren Technology has filed in Hong Kong, according to media reports.

Moore Threads, whose IPO was 4,000-times oversubscribed, issued 70 million shares. The proceeds are destined for chip development and to supplement working capital.

The Beijing-based company has achieved a certain technological lead in China’s full-function GPU space and is helping to drive the country’s push for self-sufficiency in GPU technology, James Zhang, founder, chairman, and chief executive, said during its IPO roadshow last month.

“Our products already match or surpass international benchmarks in some performance indicators,” said Zhang, who is former vice president of US chip giant Nvidia and general manager of Nvidia China.

Since being founded in 2020, Moore Threads has raised about CNY10 billion (USD1.4 billion). Its backers include more than 60 major investors such as Shenzhen Capital Group, Tencent Investment, ByteDance Technology, HSG, 5Y Capital, and GGV Capital.

The IPO hands early backers big paper gains. Shenzhen Minghao, the largest outside shareholder, now has a 4.24 percent stake worth CNY2.3 billion (USD325.3 million), a 28-fold increase on its initial CNY80 million (USD11.3 million) investment. Other key backers, including Sequoia China and Guosheng Capital, have made over CNY1.5 billion (USD212.1 million) each.

Moore Threads attracts widespread attention not only because it is the first Chinese GPU designer to float, but also because it sits at the intersection of exploding demand for AI computing power and the accelerating push for domestic substitutes.

The business listed against a difficult external backdrop. It was placed on the US’ so-called Entity List in 2023 amid intensifying technological tensions between China and the United States.

The blacklisting, together with the China-US trade dispute, have made it difficult for Moore Threads to buy US-made materials and procure or use intellectual property and research and development tools that incorporate US technology, the firm said on Dec. 3.

The market share of GPUs, key computing chips for AI, is likely to climb to 77.3 percent in 2029 from 69.9 percent last year, according to market research firm Frost & Sullivan. This means that China’s AI GPU market will reach CNY1.03 trillion (USD145.7 billion) by the end of the decade.

Editor: Kim Taylor