Chinese generative AI startup MiniMax Group Inc. is set to list in Hong Kong, with its placement round receiving strong support from top global long-term funds and sovereign wealth funds.
According to sources familiar with the matter, investment firm Baillie Gifford, Singapore's sovereign wealth fund GIC Pte, and Norges Bank Investment Management all participated in the subscription. This indicates that despite a complex macroeconomic environment, global capital maintains a high level of interest in leading Chinese AI assets.
MiniMax will issue 29.2 million shares at a price of HK$165 per share, with the company exercising a 15% overallotment option. The IPO pricing is at the high end of the marketing range, raising HK$4.8 billion (approximately $619 million), making it one of the most watched deals in the recent market. Excluding the cornerstone investment portion, institutional investors oversubscribed to MiniMax's shares by more than 70 times, reflecting robust demand for this Chinese tech company seen as a challenger to OpenAI.
The offering received over 460 bids from institutions. Global long-term investors and sovereign wealth funds accounted for the majority of the institutional placement shares, excluding the cornerstone portion. Such investors typically hold stocks for longer periods and do not engage in short-selling, and their participation often signals recognition of the company's long-term fundamentals.
MiniMax is scheduled to begin trading in Hong Kong this Friday. Currently, the mainland China and Hong Kong markets are experiencing a wave of listings from heavyweight AI tech companies. Its competitor Zhipu AI performed strongly in its Hong Kong debut on Thursday, with its grey market price rising over 17% to a high of HK$200.20. MiniMax's subsequent market performance will be seen as a key indicator for investors assessing whether Chinese AI firms can effectively challenge their US counterparts.
Top Institutions Back the Placement According to sources, MiniMax's IPO attracted subscriptions from internationally renowned institutions including Baillie Gifford, GIC Pte, Norges Bank Investment Management, and asset manager Schroders Plc.
These institutions hold significant influence in global capital markets. Baillie Gifford is renowned for its long-term investments in tech growth stocks, while GIC and Norges Bank are among the world's largest sovereign wealth funds. A representative for Schroders Plc declined to comment, while Baillie Gifford, GIC, and Norges Bank did not respond to requests for comment.
Competitive Landscape and Capital Efficiency MiniMax and Zhipu AI represent a pragmatic development model for China in the field of artificial intelligence. Compared to US counterparts like OpenAI and Anthropic PBC, these two Chinese companies demonstrate higher capital efficiency, operating with less capital investment, fewer chip resources, and leaner staffing.
With Zhipu AI achieving a 13% gain on its first trading day Thursday, market attention has now turned to MiniMax, which lists on Friday. The stock performance of these two companies is not only crucial for their own valuations but is also seen as an early litmus test for international investors to gauge the competitiveness of Chinese AI startups.
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