Earlier this May, battery manufacturer CATL, based in China, raised $5.3 billion (€4.5 billion) in the largest initial public offering of the year.
As per the prospectus submitted today to the Hong Kong Stock Exchange, the gold-centric subsidiary of China’s Zijin Mining will offer nearly 349 million shares at HK$71.59 (€7.82) each.
The company has already reserved around $1.6 billion (€1.38 billion) in shares for institutional investors including Singapore’s sovereign fund GIC, Hillhouse fund, and asset manager BlackRock.
The funds will be utilized for acquiring a gold mine in Kazakhstan, expanding and modernizing assets in countries like Ghana and Suriname over the next five years, and in new exploration projects.
The stock market debut is scheduled for September 29. This operation takes place amidst a high demand for gold, with prices close to all-time highs due to global uncertainty, central bank purchases, expectations of interest rate cuts, and diversification strategies.
Several investment banks predict that gold prices could reach $4,000 (€3,393) per ounce (equivalent to 31.1 grams) by 2026.
At 10:30 am local time (03:30 in Lisbon), Zijin Mining’s shares were up by 0.78% in Hong Kong.
In 2024, the group produced 73 tonnes of gold, with 60% sourced from operations outside of China. The aim is to increase production to between 100 and 110 tonnes by 2028.
