BRIEF: Zhihui Mining soars in Hong Kong trading debut
Shares of mining company Xizang Zhihui Mining Co. Ltd. (2546.HK) opened 139.5% higher in their Hong Kong trading debut on Friday, then pared some of those gains to close at HK$9.52 by the midday break, still up 111% from the offer price.
The company said it sold about 122 million shares for HK$4.51 each, near the top of their range, raising net proceeds of HK$495 million ($64 million). The Hong Kong portion of the offering for local investors was 5,247 times oversubscribed, while the international offering was 1.7 times oversubscribed.
Zhihui Mining develops and produces zinc, lead and copper through mining in China’s Tibet region. The company recorded revenue of about 257 million yuan in the first seven months of this year, up 253.4% year-on-year. Its profit for that period totaled 51.74 million yuan, reversing a small loss of around 4,000 yuan in the same period last year.
The company said proceeds from the listing will be used to enhance its mining capacity, expand exploration investments, upgrade its ore processing and concentrate production capabilities, invest in and acquire assets, and for general working capital and repayment of bank borrowings.
By Lee Shih Ta
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