IPO News | Rumor has it that Zijin Gold International will raise HK$23.4 billion as early as tomorrow, BlackRock and others are cornerstone investors

The Zhitong Finance App learned that Zijin Gold International passed the Hong Kong Stock Exchange main board listing hearing on September 14. According to reports, Zijin Gold International will start accepting shares as early as Friday (September 19), and the scale of capital raised may exceed 3 billion US dollars (about HK$23.4 billion). Institutional investors such as Singapore's sovereign wealth fund GIC, Millennium Management, and Gao Lin Investment will participate in the Zijin Gold International Hong Kong IPO. According to sources, BlackRock, Fidelity International, and Baillie Gifford & Co are also investors in the international cornerstone of Zijin Gold and are expected to obtain about half of the IPO shares.

Zijin Mining previously issued an announcement stating that in order to promote the internationalization of the gold business, it will restructure overseas gold mining assets into “Zijin Gold International”, a wholly-owned subsidiary in Hong Kong, and apply for a spin-off listing in Hong Kong. Zijin Gold International officially submitted a listing application to the Stock Exchange in June this year. Morgan Stanley and CITIC Securities are co-sponsors of Zijin Gold International.

Zijin Mining announced at the end of August that shareholders of Zijin Mining's H shares will receive a guaranteed quota of 5% of the initial issuance scale. Zijin Gold International's 2024 gold sales revenue was US$2.81 billion, up 29.8% year on year, annual revenue of US$2.99 billion, up 32.2%, and parent company owners should account for profit of US$480 million, up 108.9% year on year.

Zijin Gold International expects that the proceeds from the fund-raising will be used to pay for the acquisition of the Raygorodok gold mine in Kazakhstan; upgrade and build existing mines within the next five years to comprehensively increase production capacity; exploration activities for all mines in operation; and general corporate purposes.

According to the prospectus, Zijin Gold International is one of the fastest growing companies in the global gold mining industry. Starting with the acquisition of the Gilau/Taro gold mine in Tajikistan in 2007, the company expanded its business through global acquisitions and the strengthening and expansion of operations at several large gold mines.

According to Frost & Sullivan, Zijin Gold International's gold reserves as of December 31, 2024 and gold production in 2024 ranked 9th and 11th respectively in the world. The compound annual growth rate of gold production from 2022 to 2024 reached 21.4%, and the net profit attributable to parent company owners was 61.9%.