MiniMax Group plans to raise as much as HK$14.54 billion ($2 billion) through a share placement and convertible bond sale, the Shanghai-based AI company said.
Back
MiniMax raises $2B in dual capital raise as AI funding race intensifies
MiniMax Group plans to raise as much as HK$14.54 billion ($2 billion) through a share placement and convertible bond sale, the Shanghai-based AI company said.
The convertible bonds carry a 2.75% coupon and a conversion price of HK$335 per share, a 25% premium to the HK$268 reference price, according to sales documents seen by Bloomberg. Morgan Stanley and UBS are arranging the deal.
The capital raise has two components: a placing of 35.6 million new Class A shares at HK$268 each, and a HK$6.5 billion convertible bond issuance. The bonds are redeemable at 102.75% of principal at maturity.
The fundraising comes just six months after MiniMax's Hong Kong IPO raised about $619 million, showing the capital intensity of competing in AI. The company, backed by Alibaba and Tencent, develops large language models and multimodal AI systems that require massive computing infrastructure.
MiniMax priced its January IPO at HK$165 per share, selling 29.2 million shares. Shares surged 109% on debut, closing at HK$345. After the lock-up period expired this week, the stock dropped 18% to HK$297.4, with trading volume hitting HK$6.84 billion.
The company went from a $2.5 billion private valuation in early 2024 to $4 billion by mid-2025, then saw its market cap briefly exceed that level on IPO day before settling back after the lock-up expiry.
US chip export restrictions have made it more expensive for Chinese AI companies to access advanced semiconductors, adding to the capital pressure. The dual-track approach gives MiniMax flexibility to attract both equity investors and those seeking fixed-income exposure with upside potential.
The capital raise will dilute existing shareholders by roughly 3% based on the new share count, while the convertible bonds add future dilution risk if converted. Investors will watch how MiniMax deploys the funds — toward computing infrastructure, model development, or international expansion — as the AI arms race in China intensifies.
This article is for informational purposes only and does not constitute investment advice.
[1] MINIMAX-W: Placing of 35,600,000 new Class A shares under general mandate at a placing price of HK$268.00 per placing share; Proposed simultaneous issuance of HK$6,500 million convertible bonds[2] MiniMax plans to issue $6.5 billion of guaranteed convertible bonds, Bloomberg reports - The Standard (HK)[3] MiniMax seeks to raise $2B through share and bond sales as AI funding race heats up - Crypto Briefing[4] Ethena captures over 70% of asset allocation in Robinhood Crypto Earn - Crypto Briefing