China Metallurgical fails to sizzle on debut

Metallurgical Corporation of China Ltd rose 28 percent on its first day of trading in Shanghai, less than half this year's average debut gain, as rising supply and valuation concerns weighed on demand.

China Metallurgical, the construction company that helped build the "Bird's Nest" Olympic stadium in Beijing, closed at 6.94 yuan from the 5.42-yuan offer price. The company raised 18.97 billion yuan (in the nation's second-biggest initial public offering of 2009).

The State-owned contractor that builds mines and factories trailed the average 68-percent first-day advance of the 22 other IPOs this year after selling stock at 41.9 times last year's earnings compared with 32 for the benchmark index. Chinese companies raised 96.1 billion yuan in local IPOs since a nine-month moratorium on sales ended in June.