MiniMax shares plunged 12% to HK$260.80 at the midday break after the Shanghai-based AI company unveiled a $2 billion fundraising plan that combines a discounted share placement with a convertible-bond offering. The stock's slide contrasted sharply with the Hang Seng Tech Index's 2.7% gain, signaling investor concern over dilution.

The company will place 35.6 million shares at HK$268 each, raising HK$9.54 billion (US$1.22 billion) at a 9.89% discount to Thursday's HK$297.40 close. A separate zero-coupon convertible bond issuance targets HK$6.5 billion, with an initial conversion price of HK$335 — a 12.64% premium. Combined, the deals could add 55 million shares, roughly 15% of the current float.

Proceeds are earmarked for AI infrastructure build-out and research and development, a capital-intensive push as Chinese large-language-model makers race to match U.S. rivals. The steep discount on the placement suggests management prioritized deal certainty over price, while the convertible's premium structure bets on a recovery.

The market's negative reaction reflects skepticism that the capital will translate into near-term revenue. With Chinese AI monetization still unproven, the dilution overhang may weigh on shares until MiniMax demonstrates infrastructure spending yields commercial traction.