Zijin Gold Eyes US$40 Billion Valuation in Hong Kong IPO Amid Record Gold Rally

Zijin Gold International, the offshore unit of China’s Zijin Mining (OTC Pink:ZIJMF,HKEX:2899,SHA:601899), is lining up a Hong Kong initial public offering (IPO) that could raise over US$3 billion.

According to sources familiar with the deal, bookbuilding for the share sale is set to begin on September 19, with pricing expected on September 24 and trading slated to debut on September 29.

Zijin Gold said in its prospectus that its average annual gold production grew by 21.4 percent between 2022 and 2024, placing it among the world’s fastest-growing producers of the yellow metal.

The company ranked as the world’s 11th largest gold miner last year, with output of 1.5 million ounces and proven and probable reserves of 26.1 million ounces, according to data from Frost & Sullivan.

“We are one of the fastest-growing companies in the global gold mining industry,” the company said. “Starting from the acquisition of the Tajikistan Jilau/Taror gold mines in 2007, we have expanded our business through global acquisitions, operational enhancement and production expansion of several large gold mines.”

The spot gold price is trading near historic highs in recent months, lifted by central bank purchases, investor hedging against inflation and expectations of interest rate cuts in the US.

Gold touched US$3,680 per ounce briefly on Monday (September 15), with bullish investors forecasting it could keep going. Investment firm Goldman Sachs (NYSE:GS) is projecting a price well above US$4,000 by mid-2026.

Investor demand for gold-backed assets has mirrored the metal’s rally. Physically backed gold exchange-traded funds saw US$5.5 billion of inflows in August, extending their streak to three months, as per the World Gold Council.

Year-to-date inflows of US$47 billion also rank as the second strongest on record, following the surge of 2020.

Founded in 2007 and incorporated in Hong Kong, Zijin Gold oversees all of its parent company's offshore gold assets, spanning eight mines across Central Asia, South America, Africa and Oceania. Its key projects include operations in Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana and Papua New Guinea. The unit reported revenue of US$2.99 billion in 2024, up 32 percent year-on-year, with net profit more than doubling to US$481.37 million.

The spinoff is designed to unlock the value of Zijin’s offshore gold portfolio and provide capital for further expansion.

In earlier filings, the company said proceeds will fund the acquisition of the Raygorodok mine in Kazakhstan, as well as upgrades and new construction at existing operations.

The company has already passed its listing hearing on the Hong Kong exchange, according to filings, and has appointed Morgan Stanley (NYSE:MS) and Citic Securities (HKEX:6030,SHA:600030) as joint sponsors for the transaction.

If the IPO is successful it will mark the second largest Hong Kong-based IPO for 2025. The first was Contemporary Amperex Technology's (SZSE:300750,HKEX:3750) May IPO, which netted US$5.3 billion for the battery giant.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.