This article first appeared on GuruFocus .
MiniMax Group Inc., one of China's largest generative AI startups, delivered a blockbuster Hong Kong debut after raising $619 million in its initial public offering, highlighting growing investor appetite for Chinese AI software players. Shares closed up 109% on Friday after pricing at HK$165 apiece in an upsized deal, with retail investors subscribing to more than 1,830 times the shares available. Backed by Alibaba Group Holding and Abu Dhabi's sovereign wealth fund, MiniMax is among the first wave of China's post-ChatGPT generative AI companies to reach public markets, following a more restrained debut earlier in the week by rival Knowledge Atlas Technology JSC ( ATYG ), known as Zhipu.
Market participants suggested the rally may reflect a blend of short-term speculative demand and longer-term institutional positioning. Steven Leung, executive director at UOB Kay Hian Hong Kong, said the move appears supported by both investor groups, adding that some liquidity could be rotating out of US markets amid concerns around an AI bubble. The first-day performance may indicate that enthusiasm for China's AI sector is expanding beyond hardware into software-focused firms. Earlier, localization demand drove sharp first-day gains for chipmakers Moore Threads Technology and MetaX Integrated Circuits in Shanghai, while Zhipu rose 13% in its debut session and added a further 21% on Friday.
Founded in early 2022, Shanghai-based MiniMax has roots in gaming and is attempting to compete with DeepSeek and OpenAI through consumer chatbot offerings domestically and overseas. The company's IPO prospectus shows an adjusted loss of about $186 million in the first nine months of 2025. MiniMax joins a broader wave of Chinese AI firms seeking fresh capital as Beijing supports home-grown champions, with around half of the 11 companies planning Hong Kong listings this month coming from the AI sector, ahead of upcoming debuts by OmniVision Integrated Circuits Group and GigaDevice Semiconductor.
