MiniMax just dropped a ~$20.6 billion (HK$160.41 billion) refinancing plan that's equal parts stock sale and debt raising — and existing shareholders are facing nearly 15% dilution.
The so-called "$2 billion new funding round" is actually a two-part deal: HK$95.41 billion from a new share placement and HK$65 billion from zero-coupon convertible bonds due 2027. Morgan Stanley and UBS are handling both transactions.
The company will issue 35.6 million new A-shares at HK$268 each, a 9.89% discount to the previous day's close. After the placement, new investors will hold about 10.19% of the company. The convertible bonds carry an initial conversion price of HK$335; if fully converted, they'd add roughly 19.4 million more shares. Together, the two pieces could add up to about 55 million new shares, representing 14.92% of the enlarged share capital.
The bonds don't pay interest, but if not converted they must be redeemed at 102.75% of principal at maturity — meaning HK$65 billion in bonds will require roughly HK$66.79 billion to pay off. Both tranches are already signed and priced, though they still need listing approvals. The placement is expected to close July 14, and the bonds will likely be issued July 16.
MiniMax says it will use 80% of the net proceeds for AI infrastructure and model development, with the rest going toward global commercialization, its Harness product, working capital, and general corporate purposes.