Zijin Gold IPO Set to beโ Hong kong’s Second Largest of 2024, Riding Wave of Gold Price Surge
hong Kong – Zijin Gold International, the international arm of Chinese mining giant Zijin Mining, is โlaunching a Hong Kongโ initial publicโ offering (IPO) aiming to raise HK$24.98 โbillion (US$3.21 billion). โคThis would โคmake it theโค second-largest IPO in hong Kong this year, trailing onyl the US$5.24 billion debut of Contemporary Amperex Technology (CATL) in May.
the company began selling 349 million โคshares onโ Friday at an offer โฃprice of HK$71.59 โper share, โฃwith the offering period running until noon on Wednesday, according to the prospectus released.
This spin-off from Hong Kong-listed Zijin Mining, a major player in gold and copper extraction, comes at a especially opportune moment. The price of gold has experienced a โcritically โขimportant surge in 2024, climbing nearly 40% toโค reach US$3,682 per ounce as of Friday. This rally is fueled by increased demand from global investors,including central โขbanks,seeking safe-haven assets amidst ongoing trade uncertainties and geopolitical tensions.
Following the IPO, Zijin Mining will retain a substantial stake in its international unit, holding 86.7% of Zijin Gold’s shares. โThis could decrease slightly to 85% if the overallotment option,allowing for a 15% expansion of the offering,is fullyโ exercised.A 10% allocation of shares will โฃbe available to retail investors,โ with the remainder targeted towards internationalโ investors.
Key takeaways:
* IPO Size: HK$24.98 billion (US$3.21 billion)
* Company: Zijin Gold International (wholly owned by Zijin Mining)
* Shares Offered: 349 million
* Offer Price: HK$71.59 per share
* Parent Company Stake Post-IPO: 86.7% (perhaps 85% with โoverallotment)
* Driving Factor: Surging gold prices driven byโ safe-haven โขdemand.
This IPO signals continued confidence in the gold market and provides investors withโข an prospect to participate inโค the growthโฃ of a major international mining operation.
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