Xstrata, a Swiss mining company, has enjoyed a successful flotation on the London Stock Market.

The issue was more than seven times over-subscribed.

By 1300 GMT, the shares had risen to 975p, 12% above the offer prices of 870p.

Commentators in the city of London said the enthusiastic welcome could signal fresh appetite for new listings.

Xstrata is the biggest flotation in London since Friends Provident listed last July.

During the last two years, the number of new companies coming to market has slowed to a trickle.