China Hanking (HKG:3788) said it plans to spin off its wholly owned Australian gold mining unit, Hanking Gold, for a separate listing on the Hong Kong Stock Exchange's main board by way of introduction, according to a Friday bourse filing.
Shares of the company were up about 9% in Monday morning trade.
No new shares will be offered under the proposed spin-off, but eligible shareholders will receive Hanking Gold shares via a distribution in specie.
Hanking Gold will cease to be a subsidiary upon listing, the filing said.
China Hanking said the spin-off aims to accelerate the growth of its gold business through an independent capital platform.
It also adopted a 10-year share option scheme for Hanking Gold and is planning pre-listing financing involving both the parent and third-party investors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.