---
title: "In \"The Big Banks,\" Citigroup: CATL's potential $5 billion H-share fundraising has many positive factors, reiterating the \"highly confident of outperforming the market\" rating"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282643898.md"
description: "Citi released a research report, pointing out that CATL is considering a placement of H shares of up to $5 billion, believing that the positive factors outweigh the negative ones. This fundraising is only equivalent to a 1.2% dilution of the existing issued shares, and the circulation will increase by approximately 33%. Although CATL has ample cash, the additional funds can enhance flexibility in capital expenditures and R&D. Citi has a target price of RMB 505 for CATL's A shares and HKD 710 for its H shares, reiterating the \"highly confident to outperform the market\" rating"
datetime: "2026-04-14T07:02:11.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282643898.md)
  - [en](https://longbridge.com/en/news/282643898.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282643898.md)
---

# In "The Big Banks," Citigroup: CATL's potential $5 billion H-share fundraising has many positive factors, reiterating the "highly confident of outperforming the market" rating

Citi published a research report regarding Bloomberg's report that CATL (03750.HK) is considering a placement of H shares of up to $5 billion. The bank believes that if the fundraising does occur, the positive factors are likely to outweigh the negatives. The potential $5 billion fundraising would only dilute existing issued shares by 1.2%, which is not significant; however, the circulation of H shares would increase by approximately 33%, representing a substantial improvement and providing investors with the opportunity to increase their positions to capture the growth story of energy storage systems (ESS) over the years.

Citi pointed out that from a fundamental perspective, CATL is expected to have cash of $49 billion (RMB 334 billion) by the end of 2025, with a balance sheet in a net cash position, indicating that there is no urgent need for funds in the short term. However, additional funds could provide greater flexibility for capital expenditures and R&D, especially in future battery technologies such as solid-state batteries.

Based on the sum-of-the-parts (SOTP) valuation method, the target price for CATL A shares (300750.SZ) is set at RMB 505; the target price for H shares is set at HKD 710, reaffirming the "High-Conviction Outperform" rating. (hc/)

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