MINIMAX-WP's stock price plummeted 5.72% during intraday trading on Friday, as the market reacted negatively to the company's announcement of a major capital raising initiative.

The AI startup revealed plans to raise approximately HK$16 billion through a combination of a discounted share placement and a zero-coupon convertible bond issue. The company will place 35.6 million new Class A shares at HK$268 each, representing a discount of about 9.9% to the previous closing price.

Investors expressed concerns over the significant dilution this fundraising would cause, with the placement shares alone representing approximately 11.35% of the issued share capital. The concurrent HK$6.5 billion convertible bond issue, which carries an initial conversion price at a 12.6% premium, added to the selling pressure as traders worried about future equity dilution.