May. 31, 2012 (China Knowledge) - China Nonferrous Mining Corp, or CNMC, controlled by state-owned China Nonferrous Metal Mining (Group) Co Ltd, has shelved its plans to launch initial public offering in Hong Kong
with fundraising of up to US$313 million, said a person familiar with the matter.
The person added that CNMC pulled the plans due to worsening market conditions, as Europe's debt troubles and slower growth in China have turned investors cautious about IPOs.
CNMC has cut the IPO size from initiate US$500 million as planned to around US$313 million, and will delay the launch. Earlier, on Monday, China Yongda Automobiles Services had scrapped its USD 434 million IPO just days before the close of its bookbuilding.
The nonferrous mining company, which has operations in Zambia, originally planned to accept subscription commencing May 15 by issuing 870 million shares, of which 10% would be sold to retail investors with an indicative price range between HK$2.1 and HK$2.8. But the IPO plans were eventually extended.
ABC International, China International Capital Corp, Chase & Co and UBS AG were hired by CNMC to manage the IPO, sources reported.