Movement Alert|MINIMAX-WP Falls 3.2% at Open, Dilution Pressure Persists After Formal Completion of HK$16 Billion Fundraising

Market Focus07-17 09:23

On July 17, MINIMAX-WP fell 3.2% at open, trading at HK$247.8/share with turnover of HK$12.45 million. The decline follows the company's formal announcement on July 16 confirming the completion of its 35.6 million new A-class share placement at HK$268 per share, raising approximately HK$9.54 billion gross, alongside the issuance of HK$6.5 billion zero-coupon guaranteed convertible bonds due 2027.

After the placement, total issued shares expanded from approximately 313.6 million to 349.2 million, representing an 11.35% dilution to existing shareholders. The combined fundraising of approximately HK$16 billion was completed amid sustained selling pressure from the July 9 unlock of roughly 48.9% of total shares, which triggered an 18% single-day drop. JPMorgan has twice lowered its target price to HK$240 citing dilution concerns. The stock has retreated over 80% from its March peak of HK$1,330, as markets continue to digest the combined impact of expanded free float and significant equity dilution.

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