CITIC-backed China National Gold Group looks to raise $139m in Shanghai IPO

Photo: Lauren Richmond / Unsplash

China National Gold Group Gold Jewellery Co.,Ltd, a subsidiary of state-owned China Gold Group, has filed a prospectus with The Stock Exchange of Shanghai looking to raise 898 million yuan ($139 million) in an initial public offering (IPO). 

The company, which kicked off its subscription exercise on Wednesday, plans to offer up to 180 million common shares at a price of 4.99 yuan ($0.77) apiece.

State-backed CITIC Group’s brokerage unit CITIC Securities is the principal underwriter for the deal. CITIC Securities is also an investor as it had teamed up with JD.com, Yuexiu Financial Holdings’ industrial fund, Industrial Bank’s Industrial Asset Management, and others to make an undisclosed strategic investment in the company in 2017.

With the IPO proceeds, National Gold Group will build a flagship store and R&D centre, besides establishing an information platform. It plans to use the rest of the proceeds for capital replenishment. 

China Gold Group, which is managed by the Assets Supervision and Administration Commission of the State Council, set up China National Gold Group Gold Jewellery in 2010 in Beijing to develop its gold business in the country. The subsidiary runs gold and jewellery supply chain businesses covering mining, refinement, design, manufacturing, and distribution.

The company’s sales earnings derive from its direct-sales networks including wholly-owned retail stores, key accounts, banks, e-commerce channels, and franchise stores. As of June 30, 2020, National Gold Group operated 80 fully-owned stores and 2,688 franchise units. It plans to newly launch 12 proprietary stores in the coming two to three years, according to its prospectus. 

National Gold Group clocked a net profit of 141 million yuan ($22 million) in the first half of 2020, a 36.82% year-on-year growth. During the same period, the company managed an aggregate of 9.4 billion yuan ($1.5 billion) in assets under management. 

Following the IPO, China Gold Group will remain the controlling shareholder in National Gold Group with 38.5% stake. Beijing Caifeng Jinxin Investment will keep as the second-largest shareholder holding 8.8% equity interest, followed by CITIC Securities with 6.2% stake. 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.