Shares of MiniMax Group Inc. slid as much as 12% after the Hong Kong-listed Chinese AI model maker unveiled a roughly $2 billion fundraising, prompting JPMorgan to lower its price target for the second time in less than a week over concerns about value dilution.
MiniMax Group · 00100.HK
$2B Fundraise Sinks MiniMax Shares as Dilution Fears Bite
The Hong Kong–listed Chinese AI model maker fell as much as 12% after unveiling a ~$2 billion raise, prompting JPMorgan to cut its price target for the second time in under a week.
−12%
Intraday drop, to ~HK$260.80
~$2B
Combined share + bond raise
9.89%
Placement discount to prior close
JPMorgan target cut
Price target sliced from HK$400 to HK$300
Second cut in under a week — dilution from raising fresh capital so soon after the January 2026 IPO.
The two-part package
Share placement
~HK$9.54B
35.6M new shares at HK$268 each
Convertible bonds
HK$6.5B
Zero-coupon, due 2027, HK$335 conversion price
Flagship M3 model — developer split
Open-weight, multimodal, up to 1M-token context — but pricing power is questioned
Supporters
Strong price-performance ratio
Long context, agentic workflows
SWE-Bench Pro near top-tier systems
Low-cost, large-scale deployment
Critics
Trails GLM-5.2 on some benchmarks
Weak native vision performance
Standing 50% discount = limited pricing power
Feels like a regression vs expectations
Input ~$0.30 / output $1.20 per million tokens · BrowseComp 83.5 (claimed above Opus 4.7)
The bind for China's freshly listed AI names
Heavy spending is required to keep pace with fast-moving open-weight rivals like Zhipu (GLM series) — yet repeated capital raises erode shareholder value near-term. The coming quarters will test whether M3 adoption and revenue can catch up to the capital MiniMax is now raising.
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