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Gold & silver

Zijin Gold lines up $3.2bn Hong Kong listing amid record bullion prices

Zijin Gold International is set to raise about $3.2 billion through a Hong Kong initial public offering.

According to Bloomberg, the gold miner, a unit of China’s Zijin Mining Group, is selling roughly 349 million shares at HK$71.59 each, with trading due to start on September 29.

Demand was strong, with the order book covered shortly after launch, according to people close to the deal.

Backers reportedly include GIC of Singapore, BlackRock, Fidelity International, Hillhouse and Millennium, who together agreed to take nearly half the shares as cornerstone investors.

Proceeds will be used partly to pay for a Kazakh mine acquisition and to expand operations over the next five years.

The listing comes as bullion trades at more than $3,700 an ounce, its highest level on record. Analysts say Zijin’s shares are priced at a discount to peers, potentially offering investors cheaper exposure to the sector.

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