The AI company MiniMax (HKEX: 0100), which went public in Hong Kong just six months ago, announced plans on Friday to raise a combined HK$16.041 billion. The fundraising will consist of a placement of new shares and the issuance of zero-coupon convertible bonds.
The company intends to place 35.6 million new Class A shares and issue HK$6.5 billion in zero-coupon, guaranteed convertible bonds due in 2027. The net proceeds from the combined offering are estimated at approximately HK$15.957 billion.
The investment banks Morgan Stanley and UBS are acting as joint global coordinators and bookrunners for the placement and bond offering.
According to the announcement, approximately 80% of the net proceeds will be used to further strengthen AI infrastructure and fund model research and development. Around 10% is allocated to accelerate the global commercialization and development of its Harness products, with the remaining 10% earmarked for general working capital and corporate purposes.
The new shares are being offered at a price of HK$268 each, which represents a discount of approximately 9.89% to the closing price of HK$297.4 on the last trading day. The share placement is expected to raise gross proceeds of about HK$9.5408 billion, with net proceeds estimated at HK$9.49141 billion.
The share placement will account for roughly 10.19% of the enlarged share capital following the placement, or about 9.66% of the total share capital after accounting for the potential conversion of the bonds.
The convertible bonds have a total principal amount of HK$6.5 billion, with expected net proceeds of approximately HK$6.4658 billion. The bonds have an initial conversion price set at HK$335 per share, representing a premium of about 12.64% over the last closing price.
If the bonds are fully converted, they would result in the issuance of approximately 19.403 million new shares. This would represent about 5.83% of the enlarged share capital post-placement, or roughly 5.26% of the total share capital after both the placement and potential bond conversion.
MiniMax completed its initial public offering on the Hong Kong Stock Exchange on January 9, 2024, raising approximately HK$5.54 billion with an IPO price of HK$165 per share. At the time of the announcement, the stock was trading at HK$277.2 per share, marking a 68% increase from its IPO price and giving the company a total market capitalization of around HK$86.94 billion.
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