Zijin Gold Glitters in Hong Kong Debut, With a 68.5 Percent Surge in Share Price

Zijin Gold International shares surged 68.5 percent from their offer price on Tuesday as the overseas arm of China's Zijin Mining Group debuted in Hong Kong, the city's second-largest initial public offering this year. It coincided with another record rise in global gold prices.

The IPO, the world's largest in the gold mining industry, raised about HK$25 billion (US$3.2 billion) as it was priced at HK$71.59 a share. The jump on its shares came as Hong Kong's Hang Seng Index rose 0.87 percent and gold hit a record high of US$3,839 an ounce.

The sale was heavily oversubscribed, particularly on the retail end, with analysts saying investors anticipate continued growth momentum of gold prices amid the expectation of US interest rate cuts and global tensions.

Major institutional investors in Zijin Gold include Singapore's sovereign wealth fund, Hillhouse and BlackRock. The IPO was second in size only to Chinese battery maker CATL, which debuted in Hong Kong in May.

Parent Zijin Mining, which is listed on the Shanghai exchange, is China's biggest gold and copper miner and the world's third-largest mining company. In June, it struck a deal to spend US$1.2 billion to buy a mine site in Kazakhstan, adding to Zijin Gold's portfolio of assets around the world, with major deposits in Central Asia, Australia, Guyana, Colombia, Ghana and Papua New Guinea.

Zijin Gold said funds raised from the sale will be used to upgrade of existing mines and pay for the Kazakhstan acquisition. In 2024, the production of Zijin Gold International was 1.3 million ounces, or 40.4 tons, ranking 11th in the world. Gold revenue accounted for 95 percent of its overall income of US$3 billion.

In choosing Hong Kong for the IPO, Zijin Mining Chairman Chen Jinghe said the city is currently the global hot spot for new listings and a major financial center in Asia.

"Hong Kong has a mature capital market and can help Zijin Gold International grow into a world-class gold enterprise amid global competitiveness," he told China News Service.

Shares of parent Zijin Mining closed up 3.1 percent in Shanghai, while the benchmark Shanghai Composite Index gained 0.52 percent.