Zijin Gold IPO Set to be 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 launching a Hong Kong initial public offering (IPO) aiming to raise HK$24.98 billion (US$3.21 billion). This would make it the 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 shares on Friday at an offer price of HK$71.59 per share, with 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 critically important surge in 2024, climbing nearly 40% to reach US$3,682 per ounce as of Friday. This rally is fueled by increased demand from global investors,including central banks,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. This could decrease slightly to 85% if the overallotment option,allowing for a 15% expansion of the offering,is fully exercised.A 10% allocation of shares will be available to retail investors, with the remainder targeted towards international 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 overallotment)
* Driving Factor: Surging gold prices driven by safe-haven demand.
This IPO signals continued confidence in the gold market and provides investors with an prospect to participate in the growth of a major international mining operation.
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