MiniMax Group, a Shanghai-based AI startup founded in 2022, saw its shares fall as much as 18% on July 13 after JP Morgan Chase & Co. cut its price target for the second time in less than a week, citing dilution concerns over the company’s planned fundraising.

The stock was on track for a third straight day of losses and has dropped more than 80% from its March high.

MiniMax’s shares have also been under pressure since late last week after a six-month lock-up tied to its January Hong Kong initial public offering expired on July 9 for cornerstone investors and some existing shareholders.

The lock-up expiry could increase the proportion of tradable shares from about 5% to 46%.

JP Morgan said MiniMax plans to raise HK$9.5 billion (US$1.21 billion) through new shares and HK$6.5 billion (US$828 million) through zero-coupon convertible notes.

The bank estimated that the share placement and the bonds, if fully converted, would represent about 17% of MiniMax’s total shares.

MiniMax specializes in chatbots, image generation, and video synthesis.

🔗 Source: Bloomberg