In a remarkable display of market optimism, MiniMax, a Shanghai-based large language model (LLM) company, saw its shares skyrocket by 87% on its trading debut in Hong Kong. This surge follows the company’s successful initial public offering (IPO), in which it raised an impressive $619 million, positioning its market capitalization above $12 billion.
As more Chinese artificial intelligence companies look to capitalize on advancements in the field, MiniMax stands out as a key player with its focus on consumer-oriented AI products. The company’s shares opened at HK$310 ($40), significantly higher than the IPO price of HK$165. This growth reflects a growing enthusiasm among investors for Chinese technology enterprises, particularly those contributing to the AI sector.
MiniMax is not the only company making headway in the public market; Zhipu, a competitor based in Beijing, recently debuted its own shares, raising $558 million in the same market. The stock has already appreciated by 29% since its listing, illustrating a trend where Chinese LLM companies are seeking public funding earlier than their counterparts in the United States, who have traditionally relied on private investment.
Tilly Zhang, a technology analyst at Gavekal Dragonomics, notes that there is an urgency among Chinese firms to secure funding compared to US competitors, stating, “Chinese companies have more urgent funding needs than their US counterparts.” With Zhipu having gone through eight rounds of financing in just six years, the public listing route offers a critical avenue for securing capital, especially given the limited backing compared to well-funded American tech giants.
Founded by former SenseTime executive Yan Junjie, MiniMax is notable for its multimodal models, which have garnered attention for their prowess in image and video generation. The company has drawn significant investment from major tech players, including Alibaba and Tencent, indicating strong industry support for its growth strategies. MiniMax is also tactically shifting focus toward international markets, particularly the United States, where it anticipates a larger consumer base with higher spending potential.
MiniMax aims to use its IPO proceeds to bolster its overseas operations, a move echoed by Zhipu and other emerging firms in the sector. Senior strategist Wee Khoon Chong from BNY emphasizes the significance of this new wave of IPOs, asserting, “Finally there is enough confidence to bring these companies to IPO.” He believes the ongoing optimism surrounding AI and technology will be beneficial for the region.
Despite growing revenue—over $100 million in the first nine months of 2025—MiniMax, like Zhipu, faces challenges related to cash flow as both companies heavily invest in research and development, intricate AI infrastructures, and international outreach. Notably, a substantial portion of MiniMax’s revenue comes from its consumer applications, including the chatbot app Talkie, popular among American teenagers, and the video generation platform Hailuo AI.
The recent IPOs by MiniMax and Zhipu mirror a broader trend of Chinese technology firms entering public markets, particularly those in the AI sector. This follows a wave of listings among AI chipmakers, which have seen significant appreciation in share prices amidst a growing belief that China’s push for homegrown AI hardware could lessen reliance on foreign, particularly American, entities like Nvidia. As these developments unfold, the trajectory of AI firms in China continues to garner attention and investment, underscoring a burgeoning confidence in the sector’s future.
