Zijin Gold's HK$24.5B IPO Boosts Hong Kong Market
Hong Kong's primary market has witnessed a significant boost with Zijin Gold International's IPO raising over $3.2 billion, making it the largest since JD Logistics in 2021. The gold price surge also contributed to the success.
The IPO, which priced at 71.59 HKD per share, saw strong demand with the retail tranche oversubscribed by 241 times and the institutional tranche by 20.4 times. The stock soared to a high of 119 HKD, a 66 percent increase from the IPO price. Major partners like Morgan Stanley and CITIC Securities invested significantly, although specific amounts were not disclosed. Cornerstone investors, including GIC and Hillhouse, subscribed to around $1.6 billion. If the over-allotment option is exercised, it could reach $6.2 billion, surpassing Kuaishou Technology's 2021 listing. The Hang Seng Index also rose by 0.8 percent during the IPO. Zijin's success comes amidst a 42 percent year-to-date increase in the gold price today, which reached an all-time high in September with an 11.4 percent monthly increase.
Zijin Gold International's IPO has raised over $3.2 billion, making it the largest transaction in Hong Kong since JD Logistics in 2021. The strong demand and high gold price contributed to the successful listing, with the stock price increasing by 66 percent in early trading. The Hong Kong primary market continues to thrive, with over $23.2 billion raised in emissions and secondary listings so far this year.
