"Shares in China's Zijin Gold International surged more than 60% on its debut in Hong Kong on Tuesday after raising more than $3 billion in one of the world's biggest initial public offerings this year. The blockbuster opening comes as gold prices continue to hit record highs amid surging demand for the safe-haven asset to head off broader market volatility and expected U.S. interest rate cuts."
"Zijin Gold-a unit of Zijin Mining, China's biggest miner-rocketed 67% to a peak of 120 Hong Kong dollars, valuing it at around 300 billion Hong Kong dollars ($38.6 billion). The company is one of the world's fastest-growing gold producers, with interests in eight mines located in regions across Central Asia, South America, Oceania and Africa. It said it has extensive experience in global mergers and acquisitions across mine assets."
"Proceeds from the IPO will be used to settle the acquisition of a gold mine in Kazakhstan, as well as for upgrading and constructing existing mines over the next five years, the company said in its prospectus. Global demand for gold is expected to grow because of increased interest from central banks looking for value preservation and risk diversification, according to consultancy Frost & Sullivan."
Shares in Zijin Gold International jumped over 60% on its Hong Kong debut after raising more than $3 billion, ranking among the year's largest IPOs. Gold prices hit record highs amid safe-haven demand, expectations of U.S. interest rate cuts and concerns about a possible U.S. government shutdown, pushing gold to $3,867.89. Analysts see potential for $4,000 after nearly a 50% year-to-date rise. Zijin Gold, a unit of Zijin Mining, gained as much as 67% and is valued near HK$300 billion. IPO proceeds will fund a Kazakhstan mine acquisition and mine upgrades; central bank buying and rising costs support gold.
Read at Fortune Asia
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