Zijin Gold Mining Group Plans to Raise the World’s Second-Largest IPO After CATL

Zijin aims to produce 100 to 110 tons of gold annually by 2028, up from 73 tons in 2022.

Zijin Mining Group Co. plans to raise more than $3 billion by spinning off its international gold business, according to people familiar with the matter. This Hong Kong listing could become the world’s second-largest initial public offering (IPO) this year.

It is a multinational gold mining company in China. It is the largest producer of metals, including gold, copper, and zinc, across Asia, Africa, Europe, and the US.

In comparison, CATL raised the largest IPO of 2025, securing around $4.6 billion to $5.2 billion in May through the Hong Kong Stock Exchange.

The details about the valuation and timing of Zijin Gold International Co.’s initial public offering can still change as the discussions are still in progress, the sources noted, who asked to remain anonymous due to the sensitivity of the information. The offering may take place as early as this month, with substantial investor interest reported amid record-high gold prices, according to one of the individuals.

If the IPO reaches $3 billion, it will be the largest global offering since Contemporary Amperex Technology Co. Ltd. raised funds in Hong Kong in May. Zijin, the world’s third-largest metals miner by market value, plans to increase gold production in Central Asia, Africa, and Latin America.

To invest and expand production in their assets, Zijin requires a significant amount of offshore capital, commented Xiaofeng Li, a senior partner at Beijing Dentons with experience in advising Chinese natural resource companies on international transactions.

Neither Zijin Mining nor Zijin Gold International provided immediate comments upon request. IFR previously reported that it has increased its IPO goal to at least $3 billion, up from an initial target of around $2 billion.

This year, the value of gold prices has increased by over a third, driven by central bank purchases, escalating geopolitical tensions, and anticipation of interest rate reductions in the US. Several investment banks on Wall Street have predicted that gold prices will further increase, with Goldman Sachs Group Inc. forecasting gold to rise to $4,000 an ounce next year, up from its current level of slightly over $3,500.

This price surge has sparked increased interest in the market. Rising gold prices have drawn more investors to gold mining companies, leading many Chinese producers to look for new funding. Zijin Mining’s shares hit a record high this week, giving the company a value of about $88 billion. Zijin also posted record earnings for the first half of the year. Listing on the Hong Kong Exchange, which is enjoying a remarkable year for new stock listings, particularly among Chinese firms. Overall proceeds are expected to more than double, exceeding $26 billion, according to estimates of reports.

Zijin has become known for its rapid growth and frequent acquisitions in the gold and copper sectors. The company aims to produce 100 to 110 tons of gold annually by 2028, up from 73 tons in 2022. About 60% of last year’s output came from outside China.

Recently, the company acquired a gold mine in Kazakhstan valued at $1.2 billion, following its purchase of the Akyem gold project in Ghana from Newmont Corporation, the world’s leading producer, last year.

However, this rapid growth has also increased Zijin’s debt and funding requirements. Its debt-to-capital ratio is nearly 46%, higher than the industry average. The company’s recent earnings statement also highlighted risks associated with geopolitical tensions and resource nationalism.

Based on Zijin’s history, Li from Dentons believes they should be able to quickly ramp up production. It appears that Zijin’s management may prioritize enhancing its existing projects over acquiring new ones.