BEIJING: Artificial intelligence (AI) startup MiniMax secured backing from Alibaba Group Holding Ltd and Abu Dhabi’s sovereign wealth fund for its Hong Kong debut, one of several AI firms listing in 2026 in a milestone for China’s AI industry.
MiniMax plans to raise at least HK$3.83bil (US$492mil) from selling at least 25.4 million shares at HK$151 to HK$165 apiece.
The deal may be expanded to as much as US$712mil if the company exercises upsize and greenshoe options, the startup said in a filing.
Shanghai-based MiniMax’s debut is slated for the same week as close rival Zhipu, both considered key domestic challengers to OpenAI.
They’re the first of the so-called Chinese AI dragons to list, emerging from a field that includes fellow startups Moonshot and Stepfun.
Beijing’s support for the local AI industry is encouraging firms to accelerate expansion and fundraising plans.
Recent blockbuster performances in AI-related companies also underscored demand for potential future national champions in a defining technology.
MiniMax started taking investor orders yesterday, with trading expected to start in Hong Kong on Jan 9.
In addition to Alibaba and the Abu Dhabi Investment Authority, leading cornerstone investors include International Data Group, Perseverance Asset Management and South Korea’s Mirae Asset Securities.
The cornerstone tranche comes to about US$350mil, according to the filing.
China International Capital Corp, UBS Group AG, Goldman Sachs Group Inc and Morgan Stanley are serving as underwriters.
MiniMax is among the survivors of a brutal price war in China dubbed the Battle of One Hundred Models.
The company is appealing to investors that want a piece of the emerging technology in China as it seeks to raise funding to take on US leaders such as OpenAI.
It plans to use the vast majority of the funds raised in the initial public offering (IPO) on research and development of AI models and products in the next five years, the filing said.
Like in the United States, there are also concerns in China about over-investment in AI infrastructure without clear paths to profitability.
MiniMax generated US$30.5mil in revenue 2024. That’s a fraction of the some US$13bil in revenue OpenAI is projected to make in 2025.
But global investors and tech firms are unfazed by the short-term headwinds as major countries race to bulk up their AI muscle.
On Monday, Meta Platforms Inc said it has agreed to buy Manus, a popular Singapore-based AI agent with Chinese roots, in its effort to build a business around its massive investment in the technology. The deal values Manus at more than US$2bil.
MiniMax’s planned share sale followed a year-end rush to list in Hong Kong, in what is set to be a four-year high in proceeds from IPOs in the city.
December was the busiest month for IPOs in the Asian financial hub since 2019, with 25 companies debuting their shares. — Bloomberg
