MiniMax raised HK$16 billion, with a maximum potential dilution of nearly 15%.

According to MotionInsight Beating Monitor, MiniMax has disclosed a approximately HK$16.041 billion refinancing plan, with HK$9.541 billion raised from new share placement and HK$6.5 billion from zero-coupon convertible bonds due in 2027, with Morgan Stanley and UBS handling the two transactions.

The so-called "US$2 billion new round of financing" actually involves the listed company selling shares and borrowing money simultaneously, rather than a single investor buying in at the new valuation.

The company will issue 35.6 million Class A shares at HK$268 per share, at a 9.89% discount to the previous day's closing price. After the placement, new investors will hold approximately 10.19% of the shares. The initial conversion price of the convertible bonds is HK$335, and if all are converted, approximately 19.4 million new shares will be added. The two parts together will add up to a maximum of approximately 55 million new shares, representing about 14.92% of the enlarged share capital.

The bonds do not bear interest, but upon maturity without conversion, they will be redeemed at 102.75% of the principal, amounting to approximately HK$6.5 billion or around HK$6.679 billion in redemption. Both transactions have been signed and priced, but still subject to conditions such as regulatory approval, with the placement expected to be completed on July 14 and the convertible bonds expected to be issued on July 16. The company plans to use 80% of the net proceeds for AI infrastructure and model research, with the remainder earmarked for global commercialization, Harness product, working capital, and general corporate purposes.