Shares of Chinese artificial intelligence start-up MiniMax Group surged on their Hong Kong debut on Friday, reflecting investor confidence after securing substantial support from global institutional backers.
The company’s shares first changed hands at HK$235.40, up 42.7 per cent from the initial public offering (IPO) price of HK$165, valuing it at HK$72.8 billion (US$9.3 billion). MiniMax raised HK$4.8 billion after pricing the shares at the top of the marketed range and exercising an upsized option to meet heavy institutional investors’ demand.
“We believe the true value of an artificial intelligence company lies in providing a continuous stream of advanced intelligence that serves people,” said Yan Junjie, founder, chairman and CEO of MiniMax. “This depends not only on sustained technological innovation, but even more on ensuring inclusiveness and openness throughout the entire process. That is our mission.
“We look forward to seeing the AI industry progress over the next four years as rapidly as it has in the past four. We are also striving to make our own contributions along the way – and, more importantly, to find more like-minded partners on this journey.”
Institutional investors bid for 36.76 times the shares available to them in the IPO, according to the allotment result announced by the firm on Thursday.
MiniMax secured around US$350 million, or 56.5 per cent of the offer, from 14 cornerstone investors to boost the offering’s profile, with each agreeing to a six-month lock-up. They included sovereign wealth fund 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.
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