Zijin Mining Group Co., China's largest gold producer, plans to list on Shanghai Stock Market with an initial public offering of about 10 billion yuan.
According to the statement Published by Shanghai Stock Exchange, Zijin will sell 1.4 billion A shares at the price between 8.72 yuan to 9.96 yuan each, while 0.98 billion shares purchasing online Today(16th,April). Zijin's Hong Kong- traded stock closed yesterday at HK$7.48, or 6.72 yuan. That means there is a premium of 2.7 and 6.4 percent between its A-share and H-share.
Anaylists said the reasonable A-share price would reach between 8.72 yuan to 9.96 yuan after IPOs.
Zijin's IPO fund will be used in the area of buying involved mining and processing of gold and copper.
The gold company has owned controlling stake in Tajikistan's biggest producer of the precious metal and agreed to buy a 20 percent stake in a Philippine gold project last year. Chairman Chen Jinghe said March 10 that the company may continue to buy mines overseas this year.
Bullion surged to a high record of over $1000 an ounce in March as the falling U.S. dollars and declining global equities led investors to buy alternative assets. China's demand for gold jumped 23 percent in 2007, making it the world's second-largest consumer.