Post-Unlock Selloff Hits MiniMax Shares
July 9 marked a significant date for Hong Kong-listed AI firm MiniMax-W, as its first major lock-up expiration arrived six months after listing. The market reaction was swift and severe, with the stock price tumbling nearly 20% at one point during the session, briefly touching around HK$290.
Market Cap Retreats Amid Cautious Sentiment
The plunge pulled the company's market capitalization down to approximately HK$91 billion. This represents a decline of roughly 80% from the peak levels seen around March this year. Among the recently volatile AI stocks in Hong Kong, MiniMax's correction stands out for its depth.
The Key Driver: An Unusually Large Unlock
The trigger for this volatility wasn't a sudden deterioration in business fundamentals. Instead, investor concern centered on the immediate expansion of share supply. Approximately 45% of the company's total issued shares became eligible for trading after the lock-up period ended.
To put this scale into perspective, it far exceeds typical post-IPO unlocks. For instance, another AI company, Zhipu, saw only about 5.76% of its shares freed up the previous day. MiniMax's unlock volume was multiples larger, exerting a more direct and substantial impact on market supply and demand dynamics.
Short-Term Pressure and the Road Ahead
Significant post-lock-up selloffs are a common feature in global equity markets, often reflecting short-term selling pressure. The sharp price move indicates how investors are repricing the stock in response to the sudden increase in tradable shares. For MiniMax, stability will now depend on subsequent market demand, tangible business progress, and broader sector sentiment. While the unlock provides liquidity for early investors, it also tests the market's conviction in the company's long-term value proposition.