MINIMAX-WP's stock declined sharply by 5.21% during intraday trading on Tuesday, extending a recent period of weakness for the company's shares.

The continued sell-off is driven by significant dilution concerns following multiple corporate actions. A major post-IPO lock-up period expired recently, releasing approximately 153 million shares representing 48.9% of the total share capital into the market. This was followed by the company's announcement of a placement of 35.6 million new Class A shares at a substantial discount to the market price, alongside a HK$6.5 billion zero-coupon convertible bond issuance, raising a combined HK$16 billion.

Analyst sentiment has also turned cautious, with JPMorgan reportedly lowering its target price for MINIMAX-WP to HK$240. While approximately 80% of the fundraising proceeds are earmarked for AI infrastructure and model research and development, the market appears focused on the near-term dilution pressure and the absorption of shares from the lock-up expiry, which has not been fully digested by investors.