Zijin Gold Soars in Hong Kong Debut, Hits Nearly $40 Billion Valuation
By Sherry Qin
Zijin Gold International's shares surged in their Hong Kong trading debut, marking the city's second-largest initial public offering so far this year.
Its shares jumped 65% early Tuesday to 118.00 Hong Kong dollars, giving the company a market capitalization of HK$309.16 billion, equivalent to US$39.72 billion.
The gold-mining arm of China's Zijin Mining, the world's third-largest metals miner by value, raised $3.21 billion in the deal, having raised HK$24.98 billion by selling 349 million shares at HK$71.59 each.
The listing came against a backdrop of record-high gold prices, supported by safe-haven demand amid market volatility and strong central-bank buying.
Spot gold has gained 47% so far this year to US$3846.38 a troy ounce.
Investor appetite for Hong Kong offerings has also been robust, boosting the city's IPO market and making it the world's top listing venue so far in 2025.
Zijin Gold's IPO is second in size only to Chinese battery giant Contemporary Amperex Technology's nearly US$4.6 billion listing in May.
The company consolidates the overseas gold assets of state-backed Zijin Mining Group, which has said the spinoff is aimed at building a leading publicly listed international gold company while enhancing its own valuation.
Jefferies analysts called the spinoff a landmark move for Zijin Mining, saying it fuels growth potential with limited dilution.
Zijin Gold reported revenue of US$2.99 billion last year, up 32%, while net profit more than doubled to US$481.4 million. It plans to use the net proceeds to fund its acquisition of the Raygorodok gold mine in Kazakhstan, as well as upgrades and construction projects at existing mines.
Jefferies analysts expect Zijin Gold's overseas mines to deliver higher output in the second half of this year and in 2026, as newly acquired assets in Ghana and Kazakhstan are fully consolidated.
They added that firmer gold prices could provide additional upside for both Zijin Gold and its parent.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
September 29, 2025 23:57 ET (03:57 GMT)
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