Gold mining Zhaojin raises US$282 million in IPO
November 30, 2006 | BY
clpstaff &clp articles &According to a news piece released by Herbert Smith on December 11 2006, China's Zhaojin Mining Industry successfully completed an initial public offering…
According to a news piece released by Herbert Smith on December 11 2006, China's Zhaojin Mining Industry successfully completed an initial public offering (IPO) of 172.8 million shares. Listed on the Hong Kong stock exchange on December 8 2006, the IPO raised US$282 million, which the company plans to use to expand and improve its mines.
Zhaojin has five operating mines in Shangdong province. Known as the biggest gold mining company in Shangdong, Zhaojin recorded a turnover of Rmb868 million in 2005 and made Rmb160 million in profits.
Fund manager Diane Goldberg of Carmignac Gestion in Paris told Bloomberg: "Commodities are enjoying a good long-term trend, and there are not many gold-mining stocks listed in Hong Kong." This factor serves as a strong base to boost Zhaojin's share price since there are few competitors in the region's gold-stock market.
Ashley Alder of Herbert Smith advised Zhaojin Mining Industry on the deal. Other advisors included: King & Wood, which advised the company on issues related to PRC law; Mallesons Stephen Jaques, which advised the underwriters about Hong Kong law; and Cleary Gottlieb Steen & Hamilton, which provided advice on US and PRC law.
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