IPO News | Zhihui Mining (02546) ended its prospectus margin subscription amount of HK$221.1 billion and overbought 4,019 times

The Zhitong Finance App learned that the mining company Zhihui Mining (02546) offered shares from December 11 to December 16, and has recently closed its offering. As of noon on December 16, according to comprehensive market data, Zhihui Mining had received a margin loan of HK$221.1 billion from brokerage firms, which had overbought 4,019 times the amount of capital raised in the public sale of HK$55 million.

Zhihui Mining plans to issue 120 million H shares, of which the Hong Kong public sale accounts for 10%. The sale price is between HK$4.1 and HK$4.51 per share, 1,000 shares per lot, and an entry fee of $4555.5 per lot. The total amount raised is HK$550 million. The company is expected to be listed for sale on December 19, with Guojin Securities and Miley Capital as co-sponsors.

In this listing, Zhihui Mining introduced Spico, which is wholly-owned by Zhaojin Mining (01818), GIGA Industries and Poly Platinum, which are wholly owned by Zhaojin Mining (01818), and Poly Platinum as cornerstone investors, subscribed for approximately HK$144 million and HK$80 million respectively. In total, 497.37 million shares were allocated, accounting for 40.78% of the global sale.

According to the prospectus, Zhihui Mining was founded in 2013 and is a mining company focusing on zinc, lead and copper prospecting, mining, production and sales of zinc, lead and copper concentrates in Tibet, China. According to data from Shanghai Nonferrous Metals Network, based on the average annual output of zinc concentrate, lead concentrate and copper concentrate in Tibet in 2024, the company ranked fifth, fourth and fifth respectively.

In 2024, the company accounted for 11.1% of total zinc concentrate production, 4.2% of total lead concentrate production, and 0.1% of total copper concentrate production in Tibet, respectively. Lead and copper concentrate production in Tibet is dominated by leading companies. In 2024, the two major companies located in Tibet accounted for 36.1% and 31.6% of the total market share of lead concentrate production, respectively; the two major companies, both located in Tibet, also accounted for 44.2% and 42.3% of the total copper concentrate market share in Tibet, respectively.

Zhihui Mining has a business operation chain covering prospecting, mining, concentrate production and sales. The company's main products include zinc concentrate, lead concentrate and copper concentrate. The company's revenue comes from selling these concentrates to Chinese customers. The company's customers include non-ferrous metal traders and refineries. The former generally carries out subsequent sale of concentrate to concentrate end users; the latter will further process the company's concentrate according to their customer needs.

On the financial side, in 2022, 2023, 2024, and January-July 2025, the company recorded revenue of 482 million yuan (RMB, same below), 546 million yuan, 301 million yuan, and 257 million yuan respectively. In the same period, it recorded total profit and overall revenue of RMB 118 million, RMB 155 million, RMB 558.54 million and RMB 517.37 million for the same period.

According to the prospectus, Zhihui Mining plans to use about 29.2% of the net proceeds from the global sale to comprehensively enhance mining capacity; about 23.4% to increase the company's prospecting investment within the scope of mining rights in Tibet; about 18.7% to enhance beneficiation production capacity and optimize concentrate production capacity to support the company's sustainable growth; about 14.0% to invest and acquire assets with growth potential; and about 7.7% will be used to repay bank loans by 2026.