(Yicai) Dec. 31 -- Shanghai-based large language model company MiniMax Group, the developer of popular AI application Hailuo AI, aims to complete an initial public offering valued up to HKD50.4 billion (USD6.5 billion) and is scheduled to be listed on the Hong Kong Stock Exchange on Jan. 9.

The LLM developer expects to raise net proceeds of about HKD3.8 billion (USD490 million) from the global offering, according to its recent prospectus. Around 90 percent of the funds will be used for research and development over the next five years, including the development of its LLMs and AI-native products, while the remaining roughly 10 percent will be allocated to working capital and general corporate purposes.

MiniMax disclosed the document just 48 hours after another Chinese LLM company, Zhipu Huazhang Technology, released its own prospectus. Both firms are widely seen as among China’s most promising AI companies and are moving almost simultaneously toward capital market listings.

MiniMax plans to issue 25.4 million shares in the initial public offering at a price range of HKD151 to HKD165 (USD19.40 to USD21.20) per share, valuing the offering at no more than HKD50.4 billion, per the bourse filing. The company has introduced 14 cornerstone investors, including Aspex Management, Eastspring Investments, Mirae Asset Financial Group, Alibaba Group Holding, and E Fund Management, with total subscriptions amounting to about HKD2.7 billion.

Founded in 2022, MiniMax focuses on the development of general-purpose models. Based on its self-developed LLMs, the company has built an AI product portfolio serving both consumer and business users, including Talkie, a virtual character chatbot, and Xingye, a generator of virtual characters, while also offering open platform services for enterprise clients and developers.

As of last September, MiniMax had more than 212 million individual users across over 200 countries and regions. In the first nine months of this year, the company’s revenue almost tripled from a year earlier, with overseas markets accounting for over 70 percent of total revenue.

MiniMax reported revenue of USD3.5 million in 2023 and USD30.5 million in 2024, marking a nearly ninefold increase. As of Sept. 30, total revenue had climbed to USD53.4 million, almost tripling from a year ago.

MiniMax is still unprofitable. The company posted net losses of USD269 million and USD465 million in 2023 and 2024, respectively, equivalent to 78 times and 15 times annual revenue. As of Sept. 30, MiniMax recorded a loss of USD512 million for the year, around nine times its revenue, while adjusted net loss under non-International Financial Reporting Standards reached USD186 million.

Editor: Emmi Laine