Zijin Gold said to draw GIC, Millennium as investors for Hong Kong IPO

GIC Pte, Millennium Management LLC and Hillhouse Investment are among heavyweights that are set to invest in Zijin Gold International Co.’s initial public offering in Hong Kong, according to people familiar with the matter.

BlackRock Inc., Fidelity International Ltd. and Baillie Gifford & Co. are also among cornerstone investors that are poised to get around half of the IPO shares, the people said, asking not to be identified because the information isn’t public.

The lineup of marquee names investing in Zijin Gold signals the world’s biggest listing since May will be in high demand. The company is set to start taking orders from other investors and the public as soon as Friday in a deal that may fetch more than $3 billion, the people said.

Discussions are ongoing and the allocations are still being finalized, the people said. Cornerstone investors in Hong Kong typically get a guaranteed allocation of shares on condition they agree to hold on to them for six months.

Fidelity declined to comment. Neither Zijin Gold nor the other investors replied to requests for comment.

The gold producer is coming to market at a time prices of the precious metal extend their rise — it broke another record this week — providing a tailwind for miners to raise funds for further expansion or pay off debt. For example, PT Merdeka Gold Resources is planning to raise more than $280 million in what would be Indonesia’s largest IPO this year.

The caliber of funds buying into Zijin Gold builds on the return of global investors to Hong Kong, which has had one of the region’s most buoyant stock markets this year. That’s led to a flurry of deals in the city, and making billion-dollar offerings common again.

Zijin Gold is also the latest Hong Kong IPO in which multistrategy hedge-fund giant Millennium is set to invest in as a cornerstone investor. It participated in Jiangsu Hengrui Pharmaceuticals Co.’s listing in May.

Zijin Gold, a unit of China’s biggest miner, Zijin Mining Group Co., has been pursuing rapid expansions and numerous acquisitions across gold and copper.

Part of Zijin Gold’s IPO proceeds will go toward settling the acquisition of a gold mine in Kazakhstan, according to the company. It also plans to fund upgrades and construction of existing mines over the next five years.

Morgan Stanley and Citic Securities Co. are arranging Zijin Gold’s IPO.

(By Dave Sebastian and Julia Fioretti)