Kazakhmys not to raise any cash when listing in HK

The London-listed group, the world's 10th-largest copper miner, confirmed plans to seek a secondary listing earlier this month, following a string of rivals who have sought to boost their presence in China, the world's biggest copper importer.

Kazakhmys said on Friday 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.

"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," chief executive Oleg Novachuk said. "We will continue to assess our position, as our growth projects develop and market conditions change."

Kazakhmys shares are down 22 percent so far this year, and were hit along with the sector in recent weeks by the rout in commodity prices.

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 (VALE5.SA) (6210.HK) and Swiss-based commodities giant Glencore (GLEN.L) (0805.HK), 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 (PRU.L) 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.