China’s Zijin Gold International plans to raise $3.2 billion in a Hong Kong IPO, the city’s largest in four years. The offering could reach $3.7 billion with an overallotment, valuing the company at $24.6 billion. Gold has surged 39% this year, boosting Zijin Gold’s market cap to $24 billion.

Zijin Gold, a unit of Zijin Mining, will sell 349 million shares at HK$71.59 each, with trading starting on September 29. This IPO would be the largest in Hong Kong since May 2021. Chery aims to raise $1.2 billion, contributing to the city’s $18.5 billion in new listing funds raised this year.

Proceeds from Zijin Gold’s offering will go towards upgrading existing mines over the next five years. Global gold demand is expected to grow at a compound annual rate of 3.2% from 2024 to 2030. Cornerstone investors have already subscribed to $1.6 billion worth of shares, with GIC, Hillhouse, BlackRock, and Schroders among the key investors.

Morgan Stanley and CITIC Securities are joint sponsors of the offering. Zijin Mining’s shares rose in Shenzhen and Hong Kong on Friday afternoon. Hong Kong’s strong equity market recovery has attracted significant IPO activity, with demand for Chinese AI and tech stocks driving the trend.

Read more at Yahoo Finance: Zijin Gold seeks $3.2 billion in Hong Kong IPO as demand for the precious metal soars