On the morning of September 30th, ZIJIN GOLD INTL (Stock Code: 2259.HK) rang the opening bell and listed on the Main Board of the Hong Kong Stock Exchange. This marks Zijin Mining Group's third major capital operation following its H-share listing in 2003 and A-share listing in 2008, signifying a new phase in its globalization strategy.
As one of the fastest-growing mining companies in the global gold industry, ZIJIN GOLD INTL positioned itself as a "pure global gold business" to debut on the Hong Kong stock market, opening channels for global investors to participate in gold industry dividends and representing a major strategic move for Zijin Mining Group to optimize its capital structure and unlock the value of overseas gold resources.
**Listing Success: High Subscription Rates and Multiple Records Ignite Market**
Against the backdrop of gold prices repeatedly hitting new highs, ZIJIN GOLD INTL's IPO attracted significant attention and enthusiastic subscription from investors: the international placement achieved 20.4 times oversubscription (33.4 times for the remaining allocatable portion excluding cornerstone investors), the Hong Kong public offering retail subscription reached 240.7 times oversubscription, and the existing shareholder preferential subscription achieved 22.4 times oversubscription.
Without exercising the overallotment option, ZIJIN GOLD INTL issued approximately 349 million shares at HK$71.59 per share, raising about HK$25 billion. Based on this calculation, ZIJIN GOLD INTL's market capitalization at listing reached HK$187.9 billion. If the overallotment option is fully exercised subsequently, the final number of shares sold will reach approximately 401 million, potentially raising about HK$28.7 billion.
ZIJIN GOLD INTL opened high on its listing day, surging 60.78% above the issue price by noon close, with market capitalization breaking through HK$300 billion.
According to the prospectus disclosure, the fundraising will primarily be used for upgrading and construction of existing mines, exploration and resource expansion, and payments related to the acquisition of the Raygorodok gold mine in Kazakhstan.
ZIJIN GOLD INTL successfully attracted 26 cornerstone investors, including top global investment institutions such as Singapore's Government Investment Corporation (GIC), Hillhouse, BlackRock, Schroders, Gaoyi Asset Management, Fidelity International, Greenwoods, Platinum Asset Management, UBS, Pacific Insurance, and Taikang, collectively subscribing to US$1.6 billion (approximately HK$12.5 billion) worth of shares, accounting for 49.9% of the global offering. Morgan Stanley and CITIC Securities served as joint sponsors and global coordinators for this listing. The stellar investor lineup not only reflects professional market recognition of the company's value and development prospects but also demonstrates international capital's firm confidence in the gold sector and the company's global expansion.
According to relevant statistics, ZIJIN GOLD INTL's IPO set multiple records: the largest IPO in the global gold mining industry to date, the largest overseas IPO by a Chinese mining company, and the world's second-largest IPO this year.
In late March this year, Zijin Mining Group officially launched the spin-off listing of ZIJIN GOLD INTL. The spin-off project involves assets spanning 4 continents and 8 countries, requiring coordination with 2 joint sponsors and 13 law firms. Since the first indicative announcement regarding this spin-off listing on April 30th this year, the listing work was completed in just 5 months, once again demonstrating the "Zijin speed" in capital markets and creating two new spin-off listing records: the first A-share gold listed company to spin off and apply for H-share listing, and the first gold spin-off project by a global scale mining enterprise.
**Capital Blueprint: Hong Kong Listing Activates Value Revaluation**
ZIJIN GOLD INTL is Zijin Mining Group's gold mining enterprise outside China, primarily engaged in gold exploration, mining, refining, and sales, holding interests in 8 gold mines across Central Asia, South America, Oceania, and Africa. Additionally, the company announced in June this year the acquisition of Kazakhstan's large-scale Raygorodok gold mine for US$1.2 billion, with project handover work currently proceeding in an orderly manner.
"Zijin Mining Group's decision to spin off its overseas gold segment for listing in Hong Kong is a move of great strategic significance after thorough research," said Chen Jinghe, Chairman of Zijin Mining Group, in his listing appreciation speech. "From a strategic development perspective, Zijin Mining Group needs a highly market-oriented international capital platform. As an international financial center operating strictly according to international rules, Hong Kong has become the best-performing market globally this year, undoubtedly making it the preferred choice for ZIJIN GOLD INTL's spin-off listing."
He reviewed the tremendous driving force of capital markets on Zijin Mining Group's leapfrog development: "Based on the original issue price, Zijin Mining Group's market value was HK$4.3 billion. With the support of Hong Kong H-shares and mainland A-share markets, Zijin Mining Group entered a fast development track. Currently, Zijin Mining Group's total market value has approached HK$850 billion, growing nearly 200 times, creating a 'legend' in capital markets."
He believes that in the current context of global uncertainty and currency oversupply, gold, which possesses both financial and commodity attributes, is currently "at its peak." ZIJIN GOLD INTL has sustainable high growth potential, and its Hong Kong listing will provide wings for its takeoff. The independent financing platform also broadens Zijin Mining Group's capital operation space, helping to reduce debt ratios and enhance M&A flexibility.
Chen Jinghe acknowledged that as a diversified mining company with multiple mineral types, despite impressive performance, Zijin Mining Group's valuation is relatively low compared to other mining companies, making it a value "depression." The enthusiastic investment from global capital market giants in ZIJIN GOLD INTL's Hong Kong offering, with Zijin Mining Group's H-share price currently higher than its A-share price, serves as excellent proof of high international market recognition. As the controlling shareholder of ZIJIN GOLD INTL, Zijin Mining Group can not only share the substantial returns from its future high-speed growth but also potentially enhance overall market value through value revaluation.
Data shows that from April 30th this year, when the company first made an indicative announcement regarding this spin-off listing, to September 29th, Zijin Mining Group's A-share price rose 67.2% and H-share price surged 94.4% (compared to the Shanghai Composite Index's 17.8% gain and Hang Seng Index's 20.4% rise during the same period). Zijin Mining Group's market value increased by over RMB 310 billion to RMB 768.3 billion, equivalent to approximately US$108.1 billion, ranking 15th among 5,429 A-share listed companies and among the top three global mining companies.
Correspondingly, investment institutions have given positive evaluations to ZIJIN GOLD INTL's listing. Morgan Stanley pointed out in its latest research report that against the backdrop of global gold stock valuation system reconstruction, companies with clear production growth paths and cost advantages will receive valuation premiums, and ZIJIN GOLD INTL's listing provides the market with such a scarce target. Citi also noted in a recent research report that Zijin Mining Group's current valuation is below copper and gold stock peers, possibly due to the conglomerate discount of having both gold and copper mining assets simultaneously. Based on the upcoming Hong Kong listing of its overseas gold assets through ZIJIN GOLD INTL, this will help Zijin Mining Group's value revaluation. Other analyses suggest that ZIJIN GOLD INTL's spin-off listing is expected to drive Zijin Mining Group's overall valuation logic transition from domestic pricing systems to international standards, releasing the true value of gold assets.
Under the resonance of industry dividends and capital support, ZIJIN GOLD INTL, with its operational efficiency, cost advantages, resource reserves, and clear growth path, is expected to achieve rapid production growth through implementing a dual-driven strategy of organic growth and acquisitions, occupy a more important position in the global gold landscape, provide investors with choices that combine growth potential and income stability, and significantly enhance Zijin Mining Group's brand image and influence in international capital markets, attracting more global long-term investors to focus on its overall value.