HONG KONG, Sept 30 (Reuters) – Shares of China’s Zijin Gold International (2259.HK), opens new tab rose as much as 66% in their Hong Kong trading debut on Tuesday after the company raised $3.2 billion in an initial public offering (IPO), the largest in the city for four years.
The company, a unit of a China’s Zijin Mining (601899.SS), opens new tab that operates all of the group’s gold mines outside China, sold 349 million shares at HK$71.59 each.
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In early trading, the shares hit $HK119 as Hong Kong’s Hang Seng Index (.HSI), opens new tab rose 0.8%.
Gold prices hit a record high on Tuesday.
Bullion has risen 11.4% so far in September, on track for its best month since August 2011 and about 42% this year on the back of global political uncertainties and lower interest rates around the world.
Zijin Mining’s Hong Kong shares rose as much as 8.2% after Zijin Gold’s debut. The company’s Shanghai listed shares were up 3.7%.
The retail tranche of Zijin Gold’s IPO was 241 times oversubscribed while the institutional tranche was 20.4 times oversubscribed, according to regulatory filings.
So far in 2025, IPOs and secondary listings worth $23.2 billion have taken place in Hong Kong, marking the busiest year since 2021, according to Dealogic data.
The rebound in the city’s capital markets activity comes as booming demand for Chinese AI and tech stocks has seen a raft of Chinese companies listed in the mainland also sell shares in Hong Kong.
Zijin Gold’s IPO was the largest in Hong Kong since JD Logistics’ (2618.HK), opens new tab float in May 2021, which raised $3.6 billion, Dealogic data showed.
If an overallotment is exercised on the Zijin deal, it would be the largest since Kuaishou Technology (1024.HK), opens new tab, raised $6.2 billion in January 2021.
Cornerstone investors, led by Singapore wealth fund GIC [RIC:RIC:GIC.UL] and private equity firm Hillhouse, bought about $1.6 billion worth of the shares, according to the prospectus.
Schroders (SDR.L), opens new tab and BlackRock (BLK.N), opens new tab also participated in the deal.
Reporting by Scott Murdoch in Sydney and Donny Kwok in Hong Kong; Editing by Christian Schmollinger and Neil Fullick
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Scott Murdoch has been a journalist for more than two decades working for Thomson Reuters and News Corp in Australia. He has specialised in financial journalism for most of his career and covers the Australian financial services sector and superannuation. He is based in Sydney.