Zijin Gold International plans to go public in Hong Kong with fundraising exceeding 3 billion USD, potentially becoming the largest global IPO this year after CATL

Against the backdrop of record-high gold prices, China's largest gold mining company, Zijin Mining, is packaging its overseas gold business for an IPO. On September 4th, media reports citing informed sources indicated that Zijin Mining Group's international gold mining subsidiary, Zijin Gold International, is planning to conduct an initial public offering in Hong Kong, with a fundraising scale potentially exceeding $3 billion. If the transaction proceeds as planned, Zijin Gold International is expected to become the second-largest IPO project globally this year, with the largest being CATL, which raised $5.3 billion when it went public in Hong Kong in May. Informed sources stated that due to gold prices hovering near historical highs, investor interest in this IPO is exceptionally strong. The listing could take place as early as this month, although the fundraising scale and timing may still change, with discussions ongoing. International financing institution IFR also reported this news earlier, noting that the company's IPO fundraising target has been raised from the initial approximately $2 billion to at least $3 billion. Zijin Gold International's listing plan adds new highlights to the Hong Kong IPO market. It is estimated that, benefiting from the wave of Chinese companies going public, the total fundraising amount in the Hong Kong IPO market in 2024 is expected to double compared to previous years, exceeding $26 billion. Gold Bull Market Drives IPO Frenzy This IPO comes at a time when the gold market is performing strongly. Driven by factors such as central bank purchases, expectations of interest rate cuts, and investors seeking alternatives to the dollar, gold prices recently broke through $3,500 to set new highs. Several Wall Street banks, including Goldman Sachs, predict that gold prices will continue to rise, with Goldman even warning that if the Federal Reserve's credibility is damaged, gold could soar to nearly $5,000. This trend has also boosted the capital market performance of other gold companies. Laopu Gold has seen its stock price reach new highs since its listing, with a market capitalization exceeding HKD 120 billion. Chifeng Gold, as one of the first "A+H" listed stocks this year, has risen over 60% since the beginning of the year. As China's largest gold mining company, Zijin Mining produced 73 tons of gold last year, with 60% coming from overseas projects. The company's goal is to increase production to 100-110 tons by 2028. According to Frost & Sullivan data, the company ranks ninth globally in gold reserves as of December 31, 2024, and eleventh in gold production for 2024. The prospectus shows that as of now, Zijin Gold International holds interests in eight gold mines in resource-rich areas such as Central Asia, South America, Oceania, and Africa, including core assets like the Tajikistan Jilau/Talco Gold Mine, the Norton Gold Mine in Australia, and the Aurora Gold Mine in Guyana