Glencore sets retail tranche for Hong Kong IPO
2011-05-13 11:20:59
Swiss Commodities giant Glencore on Thursday said it aims to raise up to HK$2.47 billion ($318 million) in the Hong Kong retail offering part of its IPO later this month.
The firm is looking to generate up to $11 billion in a dual listing in London and Hong Kong, which will be the planet's largest initial public offering this year.
Glencore said it will sell 31.25 million shares in the Hong Kong offer in an indicative price range of HK$61.24 and HK$79.18.
The Hong Kong retail offer represents 2.5 percent of the total sale. The remainder will be sold in London.
"The demand for commodities across Asia has played a key role in the growth of Glencore," Ivan Glasenberg, Glencore's chief executive told reporters in Hong Kong via video conference from London.
"A secondary listing in Hong Kong will enable us to build long-term mutually beneficial relationships with Hong Kong investors, as we have with customers, suppliers and capital providers worldwide over the years," he said, adding that there is "strong demand" for the firm's IPO.
It will open its retail book in Hong Kong on Friday. Trading of the shares will start in London on May 24 and May 25 in Hong Kong.
Earlier this month the Switzerland-based giant priced its shares at between US$7.91-US$9.55 for global institutional investors. The firm valued itself at about $61 billion dollars.
Final pricing is expected to be announced in May 19 when conditional dealing will start on the London Stock Exchange.
Glencore, the world's biggest commodities trader by revenue -- $145 billion in 2010 -- has said that if the IPO is over-subscribed, it could sell more shares, sending the listing to about $12 billion.
It has already secured $3.1 billion from so-called cornerstone investors, including sovereign wealth funds in Singapore and Abu Dhabi, asset managers and private banks, according to media reports.
The sale comes as commodity prices soar amid huge demand from Asia, particularly China and India, for resources to power their economies.
The IPO is expected to overshadow the $5.5 billion Singapore offering of Hong Kong billionaire Li Ka-shing's Hutchison Port Holdings Trust in March.