Reuters reported that copper miner Kazakhmys has decided against raising as much as USD 200 million by issuing new shares when it lists in Hong Kong, blaming a weak share price after volatility on commodity markets battered the sector.

The London listed group confirmed plans to seek a secondary listing earlier this month following a string of rivals who have sought to boost their presence in China.

Kazakhmys said that its board had given final approval to the secondary listing but decided against issuing new shares. It will list by introduction meaning it can raise capital in the future.

Mr Oleg Novachuk CEO of Kazakhmys said that "At current share price levels and with the strength of our balance sheet, it would not create value for existing shareholders to issue new shares at this time. We will continue to assess our position, as our growth projects develop and market conditions change."

Kazakhmys sells the bulk of its products in Asia and its move into the region with a secondary listing follows others including Brazilian group Vale and Swiss-based commodities giant Glencore which have sought to move closer to China and show commitment to the region. The Hong Kong Stock Exchange, currently the world's fifth largest, has been courting miners hoping to capitalize on the commodity boom China's appetite for natural resources and demand from Hong Kong's institutional and retail investors.

Secondary listings however have had mixed success. Both Vale and British insurer Prudential have seen little in the way of increased liquidity, something exchange officials have attributed to the fact neither of the two issued new shares when listing in Hong Kong.

(Sourced from Reuters)