MiniMax just revealed a hefty HK$16.041 billion ($2.05 billion) refinancing package. That includes HK$9.541 billion from a new share placement and HK$6.5 billion in zero-coupon convertible bonds due 2027. Morgan Stanley and UBS are managing both deals.
Don't call it a straightforward $2 billion funding round — it's a mix of stock and debt, not a single investor buying in at a new valuation. The company is issuing 35.6 million A-shares at HK$268 each, a 9.89% discount to the previous closing price. That gives new investors about 10.19% of the company. The convertible bonds have an initial conversion price of HK$335, which could add another 19.4 million shares if fully converted. Combined, that's up to 55 million new shares, representing a potential dilution of 14.92% of the enlarged share capital.
The bonds don't pay interest but must be redeemed at 102.75% of principal if not converted — so HK$6.5 billion in bonds means a HK$6.679 billion payout. Both deals are signed and priced but still need regulatory approval. The placement is expected to close July 14, and the convertible bonds on July 16.
MiniMax plans to use 80% of the net proceeds for AI infrastructure and model R&D, with the rest going to global expansion, its Harness product, working capital, and general corporate purposes.