Zhaojin Mining to raise up to $280 mln in HK IPO

Zhaojin Mining to raise up to $280 mln in HK IPO

Chinese gold miner Zhaojin Mining Industry Co. Ltd. plans to raise up to $280 million in an IPO after setting a HK$9.80-HK$12.68 per share price range for a December listing in Hong Kong, a source familiar with the deal said on Saturday.

Shandong Province-based Zhaojin, which will kick off a formal marketing roadshow on Monday, is offering 172.8 million shares.

The retail portion of its Hong Kong offering will run from Nov. 24 to Nov. 29, with final pricing on Dec. 2, and a trading debut set for Dec. 8.

The company, plans to earmark 14.8 percent to 17.8 percent of its IPO for four investors, including the China fund run by Kuwait’s Global Investment House (GIH) , and Africa’s biggest banking group, Standard Bank , sources close to the deal told Reuters on Friday.

The underwriters, UBS and Cazenove Asia, on average estimate Zhaojin’s 2006 earnings to jump more than 75 percent to 280.5 million yuan, and 37.3 percent next year to 385 million yuan. (US$=HK$7.8)

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