State-owned miner Shandong Gold plans US$768 million in Hong Kong initial public offering
State-owned firm controls and operates 12 domestic gold mines, and accounts for roughly 6.6pc of China’s gold output. Funds to be used to partially pay down debt from purchase of Argentina’s largest mine
Shandong Gold Mining, one of China’s largest miners of the precious metal, is seeking to raise as much as US$768 million in a Hong Kong initial public offering (IPO) to fund overseas expansion.
The company is offering 327.7 million H-shares at between HK$14.7 and HK$18.4 (US$1.87-2.34), according to its filing to the Hong Kong stock exchange.
The state-owned domestic holding company of Shandong Gold is also listed in Shanghai with a market capitalisation of 43.6 billion yuan (US$6.3 billion).
The firm controls and operates 12 domestic gold mines, and accounted for 6.6 per cent of China’s gold output in 2016,. The country the world’s largest producer of the yellow metal.
Officials said it plans use the funds to partially repay US$972 million worth of debt it took on to buy a half stake in the Veladero Mine, Argentina’s largest mine and the second-largest in South America, from Canadian miner Barrick Gold in June 2017.
