Zinifex in weak debut to Australian Stock Exchange

One of the world's biggest zinc producers, Zinifex, made a lacklustre return to the Australian Stock Exchange yesterday as investors took a downbeat view on the company's prospects and eyed a possible share overhang.

The shares began trading at A$1.80 each, nearly 8 per cent below their issue price to institutional investors, and closed at A$1.83, giving Zinifex a market capitalisation of A$915 million.

"It was a disappointing debut for Zinifex," said mining analyst Mark Pervan of Daiwa Securities.

The soft start for the company, which as Pasminco went bankrupt in 2001, followed the close on Friday of the public offer, which raised a lower-than-expected A$960 million.