Zijin Gold International, a wholly-owned unit of China’s mining giant Zijin Mining, is planning to start book-building for its Hong Kong initial public offering next week, targeting a valuation of over $30 billion, said two people with direct knowledge of the matter.
Zijin Gold will open its books on September 19, aiming to seek over $3 billion in the float, said one of the sources.
At that size, it would be Hong Kong‘s second-largest listing this year, according to LSEG data, after Chinese battery giant CATL raised $4.6 billion in its offering in May.
Zijin Gold‘s offering will be priced on September 24 with the debut slated for September 29, said the sources, who declined to be named as the information was confidential.
Based on the estimated price range, Zijin Gold would be valued between $30 billion and $40 billion, said the other source.
The timetable, offering size, and company valuation may change due to market conditions or unexpected events, the sources said.
Zijin Gold, which holds all of Zijin Mining’s gold mines outside China, did not immediately respond to Reuters requests for comment.
Zijin unveiled in late April its plan to spin off Zijin Gold International and list it on the Hong Kong bourse as part of a reorganisation of its overseas gold assets, reflecting its confidence in stepping up investment in the gold business.
The proposed listed gold assets will comprise eight mines located in South America, Central Asia, Africa and Oceania.
Gold prices have staged a record-breaking rally, hitting $3,673.95 per ounce on Tuesday, driven by growing geopolitical uncertainty, heightened expectations of a U.S. interest rate cut this month and persistent central bank buying in various countries including China.
As a result, banks have been raising their gold price forecasts, with ANZ now expecting a year-end price of $3,800 per ounce, while Goldman Sachs last week said prices could surge well above its $4,000 baseline by mid-2026.
Benefiting from the surge, shares of Laopu Gold, a Chinese luxury gold jewellery brand, closed at HK$755 a piece on Wednesday, up nearly twenty-fold from their HK$40.50 IPO price in June 2024.
Zijin Gold, incorporated in Hong Kong in 2007, reported revenues of $1.8 billion, $2.3 billion and $3 billion respectively in the last three financial years, it said in a June IPO application filing to the Hong Kong Stock Exchange.
Zijin Gold did not disclose the use of IPO proceeds in the filing.
Its parent said in the half-year report Zijin Gold‘s listing would be of strategic significance in achieving its goal to mine between 100 tons and 110 tons of gold by 2028.
Reuters
