MiniMax raises HK$16 billion, the largest potential dilution is nearly 15%

On July 10, MiniMax disclosed a refinancing plan of approximately HK$16.041 billion, HK$9.541 billion from the placement of new shares, and HK$6.5 billion from zero-coupon convertible bonds due in 2027. Morgan Stanley and UBS are responsible for the two transactions. The so-called "US$2 billion new round of financing" actually means that listed companies sell stocks and borrow money at the same time, not a single investor taking shares at the new valuation. The company will issue 35.6 million Class A shares at HK$268 per share, a discount of 9.89% to the closing price of the previous day. After the placement is completed, new investors will hold approximately 10.19%. The initial conversion price of convertible bonds is HK$335. If all of them are converted, approximately 19.4 million shares will be added. The two parts together will add up to approximately 55 million shares, accounting for approximately 14.92% of the total enlarged share capital. The bonds do not pay coupon, but must be redeemed at 102.75% of the principal when they are not converted. HK$6.5 billion corresponds to the repayment amount of approximately HK$6.679 billion. The two transactions have been signed and priced, and still need to meet conditions such as listing approval. The placement is expected to be completed on July 14, and the convertible bonds are expected to be issued on July 16. The company plans to use 80% of its net fundraising for AI infrastructure and model development, and the rest for global commercialization, Harness products, working capital and general corporate purposes.