China Gold down 3.9pc on debut

PUBLISHED : Thursday, 02 December, 2010, 12:00am
UPDATED : Thursday, 02 December, 2010, 12:00am

China Gold International Resources Corporation fell on its trading debut on the Hong Kong stock exchange yesterday, while Da Ming International Holdings and Nanjing Sample Technology rose when they traded for the first time on the main board.

China Gold's share price closed at HK$42.95, down 3.9 per cent from its offer price of HK$44.68.

Its share price hit a high of HK$44.75 and reached a low of HK$41.00 yesterday, with 11.89 million shares changing hands with a turnover of HK$515.1 million.

It sold 53.66 million offer shares, raising net proceeds of HK$2.31 billion.

China Gold's controlling shareholder is state-owned China National Gold Group Corporation, the mainland's largest gold producer.

China Gold was listed on the Toronto Stock Exchange in 2001 and yesterday's Hong Kong IPO is its second listing.

It owns a gold mine in Inner Mongolia and a copper-gold mine in Tibet. China Gold chairman Sun Zhaoxue said: 'With the immense development potential of the mining industry in China, we are confident in the future development of the company. The company will seek acquisition opportunities, as well as expand production capacity. We expect satisfactory growth in the production volume of both gold and copper.'

China National Gold has given a mandate to China Gold to focus on international mining, having granted its listed subsidiary preferential rights on future international mining opportunities.

Citigroup Global Markets Asia was the global coordinator and sponsor of China Gold's IPO, while it is, together with BOCI Asia, the joint bookrunners and lead managers.

The closing share price of Da Ming inched up by only 0.95 per cent to HK$2.12 from its offer price of HK$2.10 yesterday. The mainland's largest stainless steel distributor saw 78 million shares change hands with a turnover of HK$167 million on the main board. The stock hit a high of HK$2.23 and a low of HK$2.02.

Da Ming sold 250 million offer shares, raising gross proceeds of HK$477.5 million. CCB International and Deutsche Bank were the joint sponsors, global coordinators, bookrunners and lead managers of Da Ming's IPO.

The share price of Nanjing Sample Technology closed at HK$9.85 during the first day of its transfer from the Growth Enterprise Market (GEM) to the main board yesterday, which was also the intraday high yesterday and up 6.1 per cent higher than its last GEM traded share price of HK$9.28 on November 25.

The video security systems producer saw 142,000 shares traded with a turnover of HK$1.4 million.