Shares in Chinese artificial intelligence startup Minimax Group soared on Friday's Hong Kong debut, reflecting investor confidence after securing substantial support from global institutional investors.
The company's shares initially traded at HK$235.40, up 42.7% from its initial public offering (IPO) price of HK$165. The stock rose 81.2% to HK$299 and ended morning trading 78.2% higher at HK$294, valuing it at HK$90.9 billion (US$11.7 billion). MiniMax raised HK$4.8 billion after pricing its shares at the top of the market price range and exercising an uptake option to meet institutional investor demand.
“We believe that the true value of an artificial intelligence company lies in continuously providing advanced intelligence that helps people,” said Yan Junjie, Founder, Chairman, and CEO of MiniMax. “This will depend not only on sustained innovation, but also on ensuring inclusivity and openness throughout the process. That is our mission.
“We look forward to seeing the AI industry advance as rapidly over the next four years as it has over the past four years. We also strive to make unique contributions along the way, and more importantly, find more like-minded partners on this journey.”
According to the allocation results announced by the company on Thursday, institutional investors bid 36.76 times the shares available in the IPO.
MiniMax has secured approximately USD 350 million, representing 56.5% of the offer, from 14 major investors to raise the profile of the product, with each investor agreeing to a six-month lock-up. They include sovereign wealth funds Abu Dhabi Investment Authority, Alibaba Group Holding, South Korea's Mirae Asset Securities, China's Boyu Capital, IDG and Perseverance Asset Management. Alibaba owns the post.
