Zijin Gold International Co., the gold mining subsidiary of China’s leading producer, is targeting as much as HKD 25 billion (USD 3.2 billion) in its planned initial public offering on the Hong Kong Stock Exchange. The offering, set for September 29, stands as the largest IPO globally since May.
According to the firm’s listing prospectus, Zijin Gold is selling roughly 349 million shares at HKD 71.59 per share. The IPO comes at a time when gold prices have surged to new all-time highs, giving gold miners added incentive to tap capital markets for expansion or debt repayment.
The shares are being offered at a valuation considered attractive compared with industry peers, as noted by Bloomberg Intelligence analyst. Investors are paying about 20% less per ounce of Zijin’s reserves compared to the world’s largest mining firms, and 26% below valuations of similarly-sized competitors.
Zijin Mining Group Co., the parent firm, operates mines from Central Asia to Africa and Latin America, ranking among the world’s top gold producers. Bloomberg Intelligence highlights Zijin Gold’s consistent success in acquiring promising mining assets at comparatively low cost, with its production growth outpacing major rivals, according to the company’s IPO filing.
The backdrop for the deal is an unprecedented gold rally, with prices more than doubling over the past three years and recently surpassing inflation-adjusted highs last seen in 1980. This week, gold climbed past USD 3,700 an ounce amid ongoing central bank purchases and increased scrutiny of the Federal Reserve’s independence, fueling renewed global interest in gold mining stocks.
Strong demand for gold exposure has led to a resurgence of capital-raising by miners, including recent moves by Indonesia’s PT Merdeka Gold Resources, which is preparing a public offering of over $280 million—potentially Indonesia’s largest for 2025.
Zijin Gold’s listing is notable as the industry’s most significant debut since Contemporary Amperex Technology Co. Ltd.’s USD 5 billion Hong Kong float.
The deal has attracted interest from over two dozen cornerstone investors, sources told Bloomberg, including Singapore’s GIC Pte, Hillhouse Investment, BlackRock Inc., Fidelity International Ltd., and Millennium Management LLC—each of whom has committed to holding their allocations for at least six months and is collectively set to take up roughly half the offer.
Proceeds from the IPO will help finance Zijin Gold’s acquisition of a Kazakhstan mine and fund enhancements and construction at existing assets over the next five years, according to the company.
