IPO News | Zijin Gold International (02259) closed the public offering and the subscription amount reached HK$48.7 billion, overbought by 191.4 times

The Zhitong Finance App learned that due to extreme conditions brought about by the bad weather in Hong Kong due to the typhoon, the Zijin Gold International (02259) offering deadline was delayed from September 24 to noon on the 25th. Morgan Stanley and CITIC Securities were co-sponsors. According to comprehensive brokerage data, as of 11:00 a.m. on September 25 (Thursday), the brokerage firm had lent out HK$487 billion as a margin of HK$487 billion, which was overbought by 191.4 times based on the amount raised from the public sale of HK$2,498 billion.

Zijin Gold International plans to issue 350 million shares, 10% of which will be publicly sold in Hong Kong, without a mandatory refund mechanism. The company's sale price is HK$71.59 per share, raised HK$24.98 billion, 100 shares per lot, and a first-hand deposit of HK$7231.2. It is expected to be listed on September 30 (next Tuesday). According to reports, the international placement has been fully subscribed.

In terms of cornerstone investors, Zijin Gold International introduced 28 cornerstone investors and subscribed for a total of about US$1.6 billion, or 49.9% of the shares sold globally. These include large institutions such as Singapore's sovereign wealth fund GIC, Goldman, BlackRock, UBS, Oak Capital, and Guangfa International.

According to data, Zijin Gold International was spun off from Zijin Mining's (02899) international gold mining business, and Zijin Mining shareholders received a guaranteed quota of nearly 17.45 million shares reserved by Zijin Gold International.

Zijin Mining said that eligible H shareholders will receive a guaranteed quota for priority subscription of 17.45 million shares of Zijin Gold International's reserved shares, accounting for 5% of the shares initially available for subscription in the global sale. For every 344 H shares held on September 18, eligible shareholders of Zijin Mining can subscribe for 1 reserved share of Gold International shares. This quota is not affected by the reallocation between the public offering and the international offering.

In addition to being the majority shareholder of Zijin Gold International, Zijin Mining is also its largest customer and main supplier. As of June 30, 2025, the Group's net payment to Zijin Mining was US$640 million. Last year, Zijin Gold's international revenue was US$2.99 billion, up 32.2% year on year, and parent company owners should account for profit of US$480 million, an increase of 108.9%.

According to the prospectus, Zijin Gold International is a gold mining enterprise outside of China. It is mainly engaged in gold exploration, mining, refining and sales, etc., and holds interests in 8 gold mines in Central Asia, South America, Oceania and Africa.

According to Frost & Sullivan statistics, by the end of 2024, Zijin Gold International ranked 9th in the world in terms of gold reserves and 11th in terms of production. The compound annual growth rates of production and net profit to mother from 2022 to 2024 reached 21.4% and 61.9%, respectively.

In terms of capital use, about 33.4% of the net proceeds from Zijin Gold International will be used to settle the acquisition of the Raygorodok gold mine in Kazakhstan, 50% for upgrading and construction projects of existing mines to comprehensively increase production capacity, 6.5% for exploration activities to fully realize growth potential, and 10% for general corporate purposes.