Chinalco Mining Falls 6.9% as Copper Miner Debuts in Hong KongBenjamin Haas
Chinalco Mining Corporation International, the copper mining company split from the nation’s largest aluminum producer, fell 6.9 percent on its Hong Kong trading debut.
Chinalco Mining, based in Beijing, fell to HK$1.63 from the issue price of HK$1.75 at 10:15 a.m. local time. The company raised about HK$2.93 billion ($378 million) in net proceeds in the initial public offering last week. It earlier retreated as much as 11 percent. The benchmark Hang Seng Index dropped 0.4 percent at 9:50 a.m.
Chinalco Mining raised funds with the Bloomberg World Mining Index down 11 percent in the past year amid expectations of slowing growth in China, the world’s largest consumer of copper and iron ore. The company plans to use the funds for its Toromocho copper project in Peru, and to buy and develop non-ferrous and non-aluminum projects, the sales document shows.
Companies raised $8 billion through initial public offerings in Hong Kong last year, the lowest since 2003 and down 63 percent from 2011, according to data compiled by Bloomberg.
Chinalco Mining sold $240 million of shares to five cornerstone investors, including Rio Tinto Group and Trafigura Beheer BV, the prospectus showed.