Shandong Gold Is Said to Price $617 Million Offering at Bottom

(Bloomberg) -- Shandong Gold Mining Co., the Shanghai-listed metal producer, raised HK$4.82 billion ($617 million) after pricing a Hong Kong share sale at the low end of a marketed range, people with knowledge of the matter said.

The company sold 327.7 million new shares at HK$14.70 apiece, the people said, asking not to be identified because the information is private. The shares were offered at HK$14.70 to HK$18.38 each.

Chinese firms have continued raising funds in Hong Kong even as the city’s benchmark Hang Seng Index trades about 17 percent lower than its all-time high in January. The deal adds to the $30 billion of first-time stock sales in Hong Kong this year, almost double the volume from all of 2017, according to data compiled by Bloomberg.

Shandong Gold’s Shanghai-listed shares have fallen about 25 percent this year. An external representative for Shandong Gold said she couldn’t immediately comment.

The offering attracted five cornerstone investors including rival gold producer Zhaojin Mining Industry Co. and China National Gold Group Corp.’s asset management arm, the prospectus shows. The company aims to begin trading in Hong Kong on Sept. 28, according to its prospectus.

CCB International Holdings Ltd., CSC Financial Co. and ICBC International Holdings Ltd. are joint sponsors of the listing.

©2018 Bloomberg L.P.