Minmetals cuts size of follow-on by almost 40%

After almost 24 hours in the market, Hong Kong-listed Minmetals Resources yesterday afternoon relaunched its follow-on offering at a significantly smaller size, in a move that sources said reflected a reduction in investor risk appetite.

The same sources said the deal, which had an initial target of $800 million with an upsize option of $200 million, saw good momentum when it first hit the market after the close of Hong Kong trading on Monday, but ran into a roadblock after Standard Poor’s announced that it had revised its ratings outlook on the US to negative at around 9pm Hong Kong time. As US equity markets tumbled, investors were no longer...