The second largest IPO in Hong Kong this year! Zijin Gold International raised HKD 25 billion, with 29 global institutions rushing to subscribe

On September 19, Zijin Mining's subsidiary $ZIJIN GOLD INTL(02259.HK) officially launched its Hong Kong public offering. The IPO price was set at HK$71.59 per share, with an expected total fundraising of HK$24.984 billion, making it the second-largest IPO in Hong Kong this year, second only to CATL's HK$41 billion fundraising scale.

1. Global Gold Mining Giant with Assets Across Four Continents

Zijin Gold International is formed by the consolidation of all gold mines outside China by A+H-listed company $ZIJIN MINING(02899.HK). It holds interests in 8 gold mines in gold-rich regions such as Central Asia, South America, Oceania, and Africa.

These mines include the Zilau/Taror Gold Mine in Tajikistan, the Left Bank Gold Mine in Kyrgyzstan, the Norton Gold Fields in Australia, the Aurora Gold Mine in Guyana, and the Buriticá Gold Mine in Colombia.

According to Frost & Sullivan, as of the end of 2024, Zijin Gold International's gold reserves reached 856 tons, ranking ninth among global gold mining companies.

2. High-Growth Performance Attracts Global Investors

From 2022 to 2024, the company's gold production achieved a compound annual growth rate (CAGR) of 21.4%, while the CAGR of net profit attributable to shareholders reached 61.9%.

Financial data shows that the company's revenue in 2024 was $2.99 billion, with a net profit of $621 million and a net profit attributable to shareholders of $481 million. In the first half of 2025, the company's performance continued to grow rapidly, with revenue increasing by 42.3% year-on-year to $1.997 billion, and net profit attributable to shareholders surging 142.6% year-on-year to $520 million.

The strong performance growth has attracted renowned global investment institutions. Prominent international investors such as Singapore's GIC (which manages Singapore's foreign reserves), Hillhouse Capital's HHLR Advisors (focused on secondary market investments), BlackRock, and UK asset management firm Schroders have each committed to investing no less than $120 million in Zijin Gold International.

Zhaojin Mining, a gold smelting enterprise in which Zijin Mining holds a significant stake, also announced a $30 million investment in Zijin Gold International through its wholly-owned subsidiary, Spico International, as a cornerstone investor.

3. Use of Proceeds and Future Expansion Plans

The raised funds will be used to pay for the acquisition of the Raygorodok Gold Mine in Kazakhstan. Over the next five years, the funds will be allocated to upgrade and construct existing mines to enhance the company's production capacity.

Additionally, some funds will be used for exploration activities at all operational mines over the next five years. The remaining funds will be used for general corporate purposes.

In its prospectus, Zijin Gold International mentioned its track record of acquiring high-potential mines at low costs, with production growth rates outpacing competitors of similar scale. This suggests the company is poised to continue its growth through mergers and acquisitions.

4. A Historic Opportunity in the Gold Market

Zijin Gold International's IPO comes at a historic moment for the gold market. Recently, international gold prices have repeatedly hit record highs, reaching a new peak of over $3,700 per ounce this week.

Over the past three years, gold prices have more than doubled, recently surpassing the inflation-adjusted historical high of 1980. Market analysts believe that with central banks continuing to buy gold and the Federal Reserve's independence under threat, gold prices have further upside potential.

According to Frost & Sullivan's forecast, global gold demand will grow at a CAGR of 3.2% from 2024 to 2030, rising from 148 million ounces in 2024 to 178 million ounces in 2030, driven primarily by central bank reserves, jewelry, and investment demand.