An indication exterior the Serbia Zijin Mining advanced, operated by Zijin Mining Group Co., in Bor, Serbia, on Thursday Aug. 24, 2023.
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Zijin Gold shares surged over 60% Tuesday because the Chinese language miner made its buying and selling debut in Hong Kong following a robust preliminary public providing.
The corporate had raised practically 25 billion Hong Kong {dollars} (about $3.2 billion) with shares priced at HKD$71.59 apiece, making it the world’s second-largest IPO after battery big CATL’s itemizing earlier this yr.
Zijin Gold’s debut, which was delayed by a day because of the affect of Tremendous Storm Ragasa on Hong Kong final week, comes at a time when the yellow metallic has been notching document highs amid robust safe-haven demand, expectations of fee cuts, and international financial uncertainty.
Gold costs have been selecting up steam in current weeks, which was “good timing” for Zijin Gold, mentioned Theodore Shou, chief funding officer at Skybound Capital. Spot gold hit a recent all-time excessive of $3,839.19 per ounce on Tuesday.
“That pleasure round gold is now unfold throughout the gold miners, which helps them to attain nice valuation,” he mentioned.
Zijin Gold’s itemizing builds on a resurgence in Hong Kong’s IPO market this yr that has collectively raised about $14.1 billion within the first half of this yr, a 695% year-on-year improve from the identical interval in 2024.
The corporate is the abroad gold-mining arm of China’s partially state-owned Zijin Mining that operates all the group’s gold mines exterior of China. Main buyers in its IPO included Singapore’s sovereign wealth fund GIC, Hillhouse’s HHLRA and BlackRock Funds.
Zijin Mining, the most important producer of mined gold in China, had introduced in April that it will carve out its abroad gold operations into the brand new Zijin Gold unit as a part of a wider restructuring geared toward sharpening its concentrate on gold.
The group’s international footprint spans Central Asia, South America, Oceania and Africa. It engages within the full worth chain of gold mining, from exploration and improvement to processing, smelting, refining, and gross sales.
In 2024, Zijin Mining produced 1.3 million ounces (40.4 tonnes) of gold, rating it ninth globally in reserves, in keeping with the corporate’s estimates.
