MiniMax is set to raise at least HK$4.2 billion (US$537.7 million) by pricing its Hong Kong initial public offering (IPO) at the top of its marketed range, underscoring strong demand for China’s artificial intelligence sector amid an intensifying race with the US.
The Shanghai-based firm, backed by Alibaba Group Holding and Tencent Holdings, planned to price its 25.4 million shares on offer at HK$165 each, according to people familiar with the matter. The company would stop taking orders from institutional investors at 5pm on Monday, a day earlier than scheduled, they added.
The heavy institutional investors’ demand under the international tranche, which currently accounts for 95 per cent of the offer, could see the firm exercise an option to upsize the IPO to as much as HK$4.8 billion. MiniMax is expected to start trading on the Hong Kong stock exchange on Friday.
A MiniMax representative declined to comment.
The deal comes amid a flurry of Chinese AI and technology firms tapping the stock market for fundraising, driven by Beijing’s support for the domestic tech industry.
MiniMax’s peer Zhipu AI will list in Hong Kong on Thursday, along with general-purpose graphics processing unit maker Shanghai Iluvatar CoreX Semiconductor and surgery robot maker Edge Medical. The trio is expected to raise around HK$9.2 billion via their IPOs.
