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Sources say that Zijin Gold aims to raise the Hong Kong IPO valuation above $30 billion.

Two people who have direct knowledge of this matter said that Zijin Gold International is planning to begin bookbuilding next week for its Hong Kong IPO, with a target valuation of more than $30 billion.

One source said that Zijin Gold plans to open its books September 19 and aims to raise over $3 billion.

According to LSEG, if the listing were that large, it would rank as Hong Kong's second largest listing of this year after Chinese battery company CATL raised $4.6 Billion in its May offering.

Sources who refused to name themselves because the information is confidential said that Zijin Gold will price its offering on September 24, with the debut scheduled for September 29.

According to the other source, Zijin Gold is valued between $30 and $40 billion based on the estimated range of prices.

Sources said that the market or unforeseeable events could affect the timing, size of the offering, and valuation of a company.

Zijin Gold - which owns all the gold mines of Zijin Mining outside China - did not respond immediately to comments.

Zijin announced in late April that it would spin off Zijin Gold International, and list the company on the Hong Kong stock exchange as part of an overhaul of its overseas assets. This was done to reflect its confidence about stepping up its investment in gold.

The eight gold mines that will be listed in the proposed listing are located in South America and Central Asia. They also have operations on Africa, Oceania, Africa, and Oceania.

Gold prices are on a record-breaking rise, reaching $3,673.95 an ounce Tuesday. This is due to growing geopolitical uncertainties, expectations that the U.S. will cut interest rates this month, and central bank purchases in several countries, including China.

Goldman Sachs said last week that prices could rise well above their $4,000 base by mid-2026.

Laopu Gold shares, a Chinese luxury jewellery brand that specializes in gold, closed Wednesday at HK$755 apiece, nearly doubling their HK$40.50 IPO value from June 2024.

Zijin Gold was incorporated in Hong Kong, in 2007. It reported revenues of $1.8billion, $2.3billion and $3billion respectively for the last three years. This information was provided in a filing made to the Hong Kong Stock Exchange in June.

Zijin Gold failed to disclose in its filing the purpose of the IPO proceeds.

In the half-year reports, its parent stated that Zijin Gold’s listing was of strategic importance in order to achieve its goal of mining between 100 and 110 tons gold by 2028.

(source: Reuters)