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HSBC Research: Z.AI's CB Full Conversion May Dilute Equity by Approx. 5-6%; Rating Hold
2026-09-14 16:47:13
HSBC Global Investment Research issued a report on Z.AI (02513.HK), which announced a new H-share placement of USD2 billion, alongside the issuance of USD3 billion zero-coupon CB, raising a total of USD5 billion.

Assuming full conversion at the initial conversion price, the equity dilution for existing shareholders would be about 5-6%, the broker estimated. In addition, after completion of the second H-share placement and CB issuance, the company's cash and cash equivalents should amount to at least USD7.6 billion, equivalent to about 16% of its current market cap.

HSBC Global Investment Research gave the company a Hold rating with a TP of HKD1,375.
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