MiniMax Plans to Raise $1.9 Billion Through Share Placement and Convertible Bonds
Claire Weston
MiniMax is seeking up to HK$14.454 billion (about US$1.9 billion) through a combined share placement and convertible bond, pricing the new shares at a roughly 10% discount to the last close — a financing test that comes right after a sharp post-lockup sell-off.
How is the money being raised?
MiniMax will issue 30 million new shares at a fixed price of HK$268 each, a ~9.9% discount to the July 9 closing price of HK$297.4.
Alongside that, the company is issuing HK$6.5 billion in zero-coupon convertible bonds due 2027, with a 25% conversion premium, expected to price on July 10.
This means → the two tranches together could bring in up to HK$14.454 billion — roughly US$1.9 billion.
Why sell shares at a ~10% discount?
MiniMax's stock fell sharply on its lockup-expiry day; market sentiment was already soft.
This means → without a meaningful discount, finding buyers would be difficult. The 9.9% haircut trades price for certainty.
In plain terms = the company is voluntarily cutting its asking price by nearly a tenth to get the deal done.
What does a zero-coupon convertible bond mean?
A zero-coupon convertible bond — a bond that pays no interest; at maturity, holders can choose to convert it into shares — is essentially a bet that the stock will rise.
The 25% conversion premium means the share price must climb at least a quarter above the issue level before converting makes sense.
This means → if the stock doesn't reach that level, investors simply get their principal back with no interest. MiniMax gets cheap funding in exchange for paying zero coupon.
Who is arranging the deal?
Both tranches are jointly arranged by Morgan Stanley and UBS.
Two top-tier banks co-leading signals that institutional gatekeepers see the transaction as executable.
What is the market watching for?
The central question: the stock already slumped on lockup expiry — can a deeply discounted placement plus a zero-coupon convertible actually get done?
This means → this is not just a capital raise; it is a public test of MiniMax's ability to access funding under pressure.
If the deal lands smoothly, institutional money still buys the valuation thesis. If it is under-subscribed, the pressure feeds straight back into the share price.
Content is for reference only, not financial advice.