One of the biggest players in global gold mining has just make their debut on the Hong Kong Stock Exchange.

What’s happening:

  • Zijin Gold has successfully raised $3.2B USD in their IPO financing and began trading on the Hong Kong Stock Exchange

Why it matters:‍

  • Zijin Gold is the overseas unit of China’s largest gold miner Zijin Mining and owns all of Zijin Mining’s gold assets that are located outside of China

Going deeper:‍

  • Zijin Gold’s IPO financing round was backed by multiple prominent gold asset management companies, including Singapore’s sovereign wealth fund GIC, BlackRock and Hillhouse
  • Zijin Gold has publicly stated they plan to use the new growth capital from their IPO to accelerate the build out and expansion of major gold mines they control in Central Asia, Africa and South America
  • Gold has continued to make new all time highs and experience record breaking global demand, which has recently even led to the government of El Salvador beginning to purchase gold bullion to hold directly as an asset

The intrigue:‍

  • The tranche of Zijin Gold’s IPO that was allocated to retail investors was oversubscribed by more than 241x and institutional investor allocations were oversubscribed by 20x

Market reaction:‍

  • Shares of Zijin Gold surged +60% on their first day of trading

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