Zijin Gold International (02259) is conducting its initial public offering from September 19 to September 24, 2025. The company plans to globally offer 349 million shares, with 10% allocated to Hong Kong offering and 90% to international offering, along with a 15% over-allotment option. The offer price is set at HK$71.59 per share, with each board lot consisting of 100 shares. The shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on Monday, September 29, 2025.
The company represents one of the world's leading gold mining companies, formed through the integration of all gold mines owned by ZIJIN MINING outside of China. Leveraging ZIJIN MINING's competitive management advantages in exploration, development, and operation of low-grade and difficult-to-process resources, the company has become a leading global gold mining enterprise, primarily engaged in gold exploration, mining, mineral processing, smelting, refining, and sales.
Through global mergers and acquisitions to integrate high-quality gold mining resources, combined with geological exploration, research and development, engineering, construction, and mining operation capabilities, as well as international ESG systems, the company has achieved sustained reserve and production growth with efficient operations.
As of the latest practicable date, the company holds interests in 8 gold mines located in gold-rich regions including Central Asia, South America, Oceania, and Africa. These mines are: the Jilau/Taro Gold Mine in Tajikistan, the Zuojiang Gold Mine in Kyrgyzstan, the Norton Goldfields Gold Mine in Australia, the Aurora Gold Mine in Guyana, the Buriticá Gold Mine in Colombia (through Colombian fiduciary arrangements), the Rosebel Gold Mine in Suriname, the Akyem Gold Mine in Ghana, and the Porgera Gold Mine in Papua New Guinea.
Among these gold mines, the company controls and operates 7 gold mines and holds a minority interest in the Porgera Gold Mine in Papua New Guinea. By adjusting operational models to suit the unique characteristics of each mine, the company's mines produce gold concentrates, doré gold, and gold ingots.
Through continuous resource development and operational efficiency improvements, the company has successfully established a leading position in the global gold mining industry with a strong growth track record. Starting with the acquisition of the Jilau/Taro Gold Mine in Tajikistan in 2007, the company has expanded its business through global acquisitions and operational strengthening and expansion of multiple large-scale gold mines.
According to Frost & Sullivan data, the company's gold reserves and gold production ranked 9th and 11th globally respectively as of December 31, 2024, and for 2024. According to Frost & Sullivan, the compound annual growth rate of gold production from 2022 to 2024 reached 21.4%, growing faster than other major companies, with a compound annual growth rate of net profit attributable to shareholders of 61.9%.
The company has entered into cornerstone investment agreements with cornerstone investors, who have agreed to subscribe for or procure their designated entities to subscribe for a certain number of offer shares (rounded down to the nearest complete trading unit of 100 shares per board lot) at the offer price, subject to certain conditions, for a total amount of approximately US$1.6 billion.
Based on the offer price of HK$71.59 per share, cornerstone investors will subscribe for a total of 174 million offer shares, representing 49.9% of the offer shares under the global offering and 6.6% of the issued shares immediately after completion of the global offering (assuming the over-allotment option is not exercised).
Assuming the over-allotment option is not exercised, after deducting underwriting commissions and other estimated offering expenses payable by the company for the global offering, the company estimates that the net proceeds from the global offering will be approximately HK$24.47 billion.
Approximately 33.4% of the net proceeds are expected to be used to pay the consideration for the acquisition of the Raygorodok Gold Mine in Kazakhstan. Approximately 50.1% of the net proceeds are expected to be used for upgrade and construction projects of existing mines over the next five years to comprehensively enhance the company's production capacity. Approximately 6.5% of the net proceeds are expected to be used for exploration activities at all mines operated by the company over the next five years to fully realize the company's growth potential. Approximately 10% of the net proceeds are expected to be used for general corporate purposes.