The placing, which represents around 9.99 per cent of the firm’s issued share capital, is part of the group’s plans to reduce net debt by $10.2bn, announced earlier this month. The rest of the United Kingdom mining sector also fell, with the FTSE 350…

Last week’s news initially helped lift shares, but with the stock resuming its fall, some analysts say the company may need to issue more shares to raise funds.

Shares in Glencore closed up 0.1% at 128.05 pence on Tuesday, making the offering worth GBP1.68 billion at market prices. The majority of those shares will be sold via accelerated bookbuild, with the remaining 22 percent taken up by management, it said in a statement.

Ivan Glasenberg is responding to investors’ concern that a debt-laden balance sheet isn’t able to withstand the rout in commodity prices that’s driven shares down 57 percent this year.

Citigroup Global Markets Ltd and Morgan Stanley & Co worldwide PLC are the joint bookrunners on the placing, with Barclays Bank PLC named a co-bookrunner.

Peter Grauer, the chairman of Bloomberg LP, the parent of Bloomberg News, is a senior independent non-executive director at Glencore.