Zijin Gold Worldwide, the offshore unit of China’s Zijin Mining (OTC Pink:ZIJMF,HKEX:2899,SHA:601899), is lining up a Hong Kong IPO that would elevate over US$3 billion and land its valuation as excessive as US$40 billion.
In line with sources conversant in the deal, bookbuilding for the share sale is ready to start on September 19, with pricing anticipated on September 24 and buying and selling slated to debut on September 29.
Zijin Gold stated in its prospectus that common annual gold manufacturing grew by 21.4 % between 2022 and 2024, putting it among the many world’s fastest-growing producers.
The corporate ranked because the world’s eleventh largest gold miner final 12 months, reaching an output of 1.5 million ounces and confirmed and possible reserves of 26.1 million ounces, based on knowledge from Frost & Sullivan.
“We’re one of many fastest-growing firms within the international gold mining business,” the corporate stated. “Ranging from the acquisition of the Tajikistan Jilau/Taror gold mines in 2007, we have now expanded our enterprise by way of international acquisitions, operational enhancement and manufacturing enlargement of a number of giant gold mines.”
Spot gold costs are buying and selling close to historic highs in current months, lifted by central financial institution purchases, investor hedging towards inflation, and expectations of rate of interest cuts within the US.
Gold touched US$3,680 per ounce briefly on Monday (September 15), with bullish traders forecasting it may attain US$3,800 by year-end. Funding agency Goldman Sachs projected costs properly above US$4,000 by mid-2026.
Investor demand for gold-backed belongings has mirrored the metallic’s rally. Bodily backed gold exchange-traded funds noticed US$5.5 billion of inflows in August, extending their streak to 3 months, the World Gold Council (WGC) reported on September 5.
12 months-to-date inflows of US$47 billion additionally rank because the second strongest on document, following the surge of 2020.
Based in 2007 and integrated in Hong Kong, Zijin Gold oversees all of its mum or dad’s offshore gold belongings, spanning eight mines throughout Central Asia, South America, Africa, and Oceania.
Key initiatives embrace operations in Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana, and Papua New Guinea.
The unit reported income of US$2.99 billion in 2024, up 32 % year-on-year, with web revenue greater than doubling to US$481.37 million.
The spin-off is designed to unlock the worth of Zijin’s offshore gold portfolio and supply capital for additional enlargement. In earlier filings, the corporate stated proceeds would fund the acquisition of the Raygorodok mine in Kazakhstan, in addition to upgrades and new building at current operations.
In the meantime, its mum or dad firm Zijin Mining is dual-listed in Hong Kong and Shanghai and has set a aim of manufacturing 100 to 110 tons of gold yearly by 2028.
The corporate has already handed its itemizing listening to on the Hong Kong trade, based on filings, and appointed Morgan Stanley and Citic Securities as joint sponsors for the transaction.
If the IPO is profitable it is going to mark the second largest Hong Kong-based IPO for 2025. The primary was Modern Amperex Know-how’s (CATL) (SZSE:300750,HKEX:3750) Could IPO which netted US$5.3 billion for the battery big.
Do not forget to observe us @INN_Resource for real-time information updates!
Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
