Zijin Gold International, a wholly-owned unit of China’s mining giant Zijin Mining, is aiming to raise HK$24.98 billion ($3.21 billion) in a Hong Kong initial public offering, the largest of its kind in the city this year, according to its prospectus released on Friday.
Zijin Gold is selling 349 million shares at an offer price of HK$71.59 apiece, with dealings in shares to commence on the exchange on September 29, the prospectus showed.
This would make Zijin Gold’s IPO the largest in Hong Kong this year, overtaking Chinese automaker Chery’s offering on Wednesday, aiming to raise up to $1.2 billion.
Battery giant CATL, which was already listed on the Shenzhen Stock Exchange, raised $4.6 billion in May — in Hong Kong’s largest listing at the time.
Zijin Gold, which holds all of Zijin Mining’s gold mines outside China, said in the prospectus that it is planning to use the proceeds over the next five years for the upgrade and construction project of existing mines to fully enhance its production capabilities, among others.
Morgan Stanley and CITIC Securities are the joint sponsors of the offering.
The spin-off and independent listing of Zijin Gold International will broaden the company’s financing channels and improve overall financing efficiency, according to Zijin.
($1 = 7.7771 Hong Kong dollars)
(By Sherin Sunny and Kane Wu; Editing by Alan Barona)
