A-share gold mining company Chifeng Gold (New Listing Code: 06693) is opening its IPO subscription from Friday, February 28, to March 5, planning to issue 206 million shares, with 10% allocated for public offering. The offer price ranges from HKD 13.72 to HKD 15.83, aiming to raise a maximum of HKD 3.255 billion.

Chifeng Gold: The Fastest Growing Major Gold Producer in China

Offering Ratio: The company plans to globally issue 206 million H-shares, with 10% available in Hong Kong and 90% for international investors, plus an overallotment option of 15%.

Offer Price: Each share is priced between HKD 13.72 and HKD 15.83, with a minimum subscription of 200 shares, resulting in an entry fee of HKD 3,197.93.

Subscription Dates: February 28 to March 5

Listing Date: March 10

IPO Sponsor: CITIC Securities

(Source: Chifeng Gold Prospectus)

Company Overview

Chifeng Gold primarily engages in gold mining, selection, and sales. As of the latest practicable date, the company operates seven gold and polymetallic mines located in China, Southeast Asia, and West Africa, and holds a total of 12 valid mining permits in China.

According to a Frost & Sullivan report, Chifeng Gold is the fastest-growing major gold producer among its domestic peers. From 2021 to 2023, its gold production achieved a compound annual growth rate (CAGR) of 33.1%, exceeding the average growth rate of 16.4% for major listed gold producers in China.

Financial Information

From 2021 to 2023, the company reported revenues of approximately HKD 3.783 billion, HKD 6.267 billion, and HKD 7.221 billion, respectively, with net profits attributable to shareholders of about HKD 582 million, HKD 451 million, and HKD 804 million. For the first nine months of 2024, the company achieved revenues of around HKD 6.223 billion and net profits of approximately HKD 1.115 billion.

Cornerstone Investments

The announcement noted that the company has signed cornerstone investment agreements with Jinshan (Hong Kong) International Mining Co., Ltd. and Spire International Ltd. Jinshan (Hong Kong) International Mining Co., Ltd. and Spire International Ltd. will subscribe for approximately HKD 311 million and HKD 434 million worth of shares, respectively. Jinshan (Hong Kong) International Mining Co., Ltd. is a wholly-owned subsidiary of Zijin Mining (02899), while Spire International Ltd. is ultimately controlled by Zhaojin Mining (01818).

You can subscribe to the new Hong Kong IPO through uSMART HK

The uSMART HK app features a dedicated IPO center, offering exclusive promotions for customers to subscribe to public offerings in real time. After logging in the uSMART HK APP, select the transaction at the bottom right, click "IPO Subscription", select the IPO you want to subscribe, click "Public Subscription", fill in the subscription number and send the order.

（Source: uSMART HK）