MiniMax raises 16 billion HKD, with maximum potential dilution of nearly 15%.

According to Dongcha Beating monitoring, MiniMax disclosed a refinancing plan of approximately HK$16.04B, with HK$9.54B from a placement of new shares and HK$6.5 billion from zero-coupon convertible bonds due 2027. Morgan Stanley and UBS are handling the two transactions.

The so-called "US$2 billion new round of financing" is actually the listed company selling shares and borrowing money at the same time, not a single investor subscribing at a new valuation.

The company will issue 35.6 million Class A shares at HK$268 per share, a 9.89% discount to the previous day's closing price. After the placement, new investors will hold approximately 10.19%. The initial conversion price of the convertible bonds is HK$335. If fully converted, approximately 19.4 million new shares will be added, bringing the total increase to a maximum of about 55 million shares, representing approximately 14.92% of the enlarged total share capital.

The bonds carry no coupon but must be redeemed at 102.75% of the principal amount if not converted, so HK$6.5 billion corresponds to a repayment of approximately HK$6.68B. The two transactions have been signed and priced, subject to listing approval and other conditions. The placement is expected to close on July 14, and the convertible bonds are expected to be issued on July 16. The company plans to use 80% of the net proceeds for AI infrastructure and model R&D, with the remainder for global commercialization, Harness product, working capital, and general corporate purposes.