GLENCORE International shares ended flat this morning amid heavy trading in an indication of continued investor interest in the commodity-leveraged equity, the largest ever initial public offering in the UK.
The London shares of Glencore's dual-listed IPO started the day at 547 pence and traded near that level for much of the day, but finally closed flat at 530p, the same level as the company's final IPO pricing.
Glencore's start suggests continued investor interest in commodities, which are often seen as a strong long-term bet in light of robust demand growth in Asia and other emerging regions. Analysts say Glencore's commodity trading operations also provide a hedge in case commodity prices retreat. Trading across commodities has been volatile in recent weeks amid rising concern about the strength of the economic recovery.
Charles Cooper, equity analyst a Oriel Securities, said Glencore's first day of trading "bodes well for a good start, subject to macro-economic conditions". He said trading volumes were strong and the IPO was reasonably priced based on the fact shares closed flat on the day.
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Another London-base analyst who wished not to be named said the fact shares closed flat rather than significantly higher was a sign Glencore had accurately priced its shares so as not to leave any untapped value on the table.
Glencore priced its IPO at 530p, the midpoint of its previously-announced range, valuing the company at £36.7 billion ($55.9bn). Shares were priced at $66.53 Hong Kong dollars ($8) in a simultaneous secondary listing of its shares in Hong Kong.
The share sale will raise £6.2 billion, prior to the exercising of the over-allotment option, which accounts for 10 per cent of the global share offer. Before Glencore, the largest amount raised from a UK listing was the 2006 joint Moscow and London listing of Russian oil giant OAO Rosneft, which raised £3.6bn from the London listing.
Yesterday marked the start of Glencore's conditional trading -- where shares can be traded on screens but aren't yet delivered. Conditional trading is standard practice in IPOs which allows investors to buy and sell their shares while the regulatory process for listing the shares is being completed. The shares are traded but the transaction isn't settled until the first official or unconditional day of trading. Shares are expected to start official or unconditional trading in London on Tuesday and a day later in Hong Kong.
Glencore will become the first company in 25 years to enter London's FTSE 100 stock index after the close of the first official day of trading in London. It is also eligible for early inclusion in relevant MSCI indexes, subject to MSCI confirmation.
But the IPO comes at a challenging time, when investor appetite for new listings is limited and as commodity-price jitters have taken a toll on mining stocks.
Although the valuation is below some expectations from when Glencore announced in April its intention to go public, a valuation of close to $US60 billion is considered something of a victory for the company and chief executive Ivan Glasenberg, whose shares in the company are now valued at $US9.3bn based on the pricing of the IPO.
Glencore is a 37-year-old natural resource conglomerate that produces and trades commodities such as oil and sugar; owns physical assets, such as ships and mines; and holds stakes in publicly traded companies, including most notably Xstrata, in which Glencore holds a 34 per cent stake.
Glencore plans to use the proceeds from the listing and private placement to increase its stake in Kazzinc to 93 per cent from 50.7 per cent, to cover expected tax liabilities from the listing, and to repay a small tranch of loans made to the company by certain shareholders.
Glencore is also thought to desire a more significant combination with Xstrata.
Glencore mulling over $18.5bn takeover of miner
GLENCORE is considering a blockbuster pound stg. 12 billion ($18.5bn) takeover of ENRC, the FTSE-100 mining group that is reeling from a bitter boardroom battle.
The move would transform Glencore, a Swiss commodities trader that floated in London last month, into one of the world's largest mining operators, rivalling majors like BHP Billiton and Rio Tinto.
Chief executive Ivan Glasenberg is understood to have held talks with Alexander Mashkevitch, Patokh Chodiev and Alijan Ibragimov, who control about 45 per cent of ENRC's shares.
According to a well-placed source, both sides want to do it.
"They decided to park the talks until after the Glencore listing and come back to talk numbers," the source said.
"They will meet again in the next few weeks."
Mr Glasenberg had also spoken to the government of Kazakhstan, which owns 12 per cent, and had received a "positive" response.
The bulk of ENRC's operations are in Kazakhstan.
Glencore pulled off the largest float on record in London last month and Mr Glasenberg said the pound stg. 38bn listing would give him the "firepower" to make acquisitions. The company, which is the world's biggest commodities trader, wants to increase its ownership of mines and plants.
Analysts have long expected Mr Glasenberg to make a move for pound stg. 40bn coalmining group Xstrata, in which Glencore already holds a 34 per cent stake.
ENRC shares have lost 30 per cent this year, closing at 742p on Friday, and have underperformed as leaks of boardroom fights grew.
N its inaugural earnings report as a public company, Glencore International posted first-quarter results that disappointed investors, who drove the commodities giant's shares to their lowest level yet.
Glencore stock fell 4.5 per cent in London overnight to close at 500 pence ($7.67), their lowest since the company's landmark initial public offering last month.
Glencore, a hodgepodge of assets including a commodities-trading operation, mines and stakes in public companies such as Xstrata went public to much fanfare in an offering that raised $US11 billion and valued the company at $US59bn.
But the stock has struggled since its May 19 debut, buffeted by a range of factors including renewed concern about the state of the global economy. The shares were originally sold to investors at 530 pence apiece and though they initially spiked, they have fallen steadily since then.
Compared with the year-earlier quarter, Glencore reported a 47 per cent rise in adjusted net income to $US1.3bn. That figure reflects items including a gain from the consolidation of the Vasilkovskoje Gold operations, which Glencore bought the rest of last year.
GLENCORE made its first acquisition since its flotation with the purchase of a Peruvian copper mine.
The commodities trader said yesterday that it would pay $US475 million ($446.8m) for a 70 per cent stake in the Mina Justa project.
The stake was bought from the Hong Kong copper miner, CST Mining Group.
The purchase comes six weeks after Glencore raised $US10 billion on the London stock market in Britain's largest flotation.
In the run-up to the listing, Glencore outlined plans for significant growth of its industrial assets. Glencore wants to increase production of metals and minerals by acquiring stakes in mines such as Mina Justa.
Chief executive Ivan Glasenberg believes that Glencore is well placed to take advantage of such opportunities because of its trading operations. It has about 8000 suppliers and is therefore among the first to know about acquisition opportunities such as the Peruvian project.
Mina Justa is in a region with huge copper resources and the mine is expected to produce up to 110,000 tonnes of copper a year. Daniel Mate, co-director of Glencore's zinc, copper and lead department, said that Mina Justa would "ideally complement Glencore's polymetallic mining operations in Peru".
The deal came as Glencore raised its stake in US company Polymet to 17.9 per cent, with options for 24.95 per cent. Polymet owns a copper and nickel project in Minnesota.
Mining companies around the world are keen to increase their exposure to the copper sector. Analysts expect prices to rise because production from older mines is falling while replacement production is lacking. This has led to a number of recent deals including Barrick Gold's $US7.6bn acquisition of Equinox in Zambia and Jinchuan's $US1.36bn bid for Metorex.
Glencore's share price fell 9p to 488p yesterday as the market responded to concern about the euro-zone debt crisis.
ONLY three months after it became London's biggest flotation, the value of Glencore International has plunged by 9.3 billion pounds ($14.5bn).
The shares, issued at 530p, hit a low of 363p last week.
The collapse in value has been particularly damaging for Ivan Glasenberg, the chief executive, who has seen his paper wealth eroded by more than £1.4bn despite the shares staging a partial comeback on Friday to 403p.
The sell-off has been driven by concerns about the global economy.
Economic growth in China, which has underpinned demand for raw materials in recent years, also appears to have slowed during the summer. All of London's miners have been affected, with Rio Tinto down 12 per cent, BHP Billiton down 14 per cent and Xstrata off 22.4 per cent since May 24 when Glencore floated
RESOURCES: SWISS commodity giant Glencore is set to inject $US50 million ($49.5m) into Ironbark Zinc to support its flagship Greenland project.
The Perth-based junior's shares were placed in a trading halt on Wednesday in anticipation of the funding announcement, which is expected to be made today.
Glencore is expected to provide Ironbark with the $US50m facility to allow the junior to look for new acquisition opportunities and for working capital to progress its Citronen base metals project in Greenland.
The Australian understands that the deal will be done in two tranches. The first, for $US30m, will be converted into Ironbark shares at 42c a share. The second tranche of $US20m can be converted at 50c a share. Shares in Ironbark last traded at 30c.
Glencore already has a stake of about 11 per cent in Ironbark and if the convertible notes are issued, the Swiss giant could end up with 30 per cent of the junior
do 02 feb 2012, 09:46
'Megafusie in grondstoffensector in de maak'
LONDEN (AFN) - De Brits-Zwitserse mijnbouwgigant Xstrata maakte donderdag bekend een fusievoorstel te hebben ontvangen van Glencore, 's werelds grootste grondstoffenhandelaar. Volgens persbureau Bloomberg is met de eventuele samensmelting van de twee bedrijven 52 miljard pond (62,6 miljard euro) gemoeid.
die fusie is niet zo goed afgelopen: Glencore heeft al 10 miljard afgeschreven
Glencore earnings: What to expect
Glencore PLC is set to announce 2016 earnings Thursday before the market's open in London. Here's what you need to know.
EARNINGS FORECAST: Glencore is expected to post a pretax profit of nine cents a share for the year, compared with a loss of 37 cents a share in 2015, when adjusted earnings at its mining division fell 38% from the previous year, according to a survey of analysts by Thomson Financial.
Revenue is forecast to slip to $164.9 billion in 2016 from $170.5 billion a year ago, but lower costs and higher margins from its mining operations are expected to boost Glencore's bottom line.
Glencore verhoogt bod op kolentak Rio Tinto
Gepubliceerd op 23 jun 2017 om 16:22 | Views: 1.269
Glencore 23 jun
279,50 -2,35 (-0,83%)
Rio Tinto 23 jun
3.052,50 +14,00 (+0,46%)
LONDEN (AFN/BLOOMBERG) - Glencore heeft zijn bod op kolenonderdeel Coal & Allied Industries van branchegenoot Rio Tinto verhoogd. Het in Londen genoteerde mijnbouwbedrijf wil nu bijna 2,7 miljard dollar in contanten betalen, plus nog een extra royalty die aan de kolenprijs wordt gekoppeld.
Eerder was nog sprake van een bod van 2,6 miljard dollar door Glencore. Of het tot een deal komt is nog niet duidelijk. Onder meer regelgevende instanties zouden daarvoor akkoord moeten geven. Bovendien is Glencore niet de enige geïnteresseerde partij. Eerder maakte het Chinese Yancoal al zijn interesse in het kolenonderdeel kenbaar. Het nieuwe bod van Glencore zou minstens 225 miljoen dollar boven de prijs liggen van de Chinezen.
Glencore winnaar door elektrische auto? beurskrant.com/2018/02/15/technologie...
Glencore CEO Ivan Glasenberg resigns as board director at Russia's Rusal
Ivan Glasenberg, the chief executive of mining giant Glencore, has resigned from his position as a director at Russian aluminum firm Rusal.
The world's largest commodities company saw its share price fall as much as 5 percent on Monday following U.S. Treasury sanctions targeting Rusal, among other entities owned by a number of select Russian oligarchs.
Rusal came under the Treasury's "Specially Designated Nationals" list, which freezes a company or person's U.S. assets and forbids U.S. nationals from doing business with them.
Glencore koopt eigen aandelen in
Door ANP PRODUCTIES
1 uur geleden in FINANCIEEL
BAAR - Mijnbouwer en grondstoffenhandelaar Glencore gaat voor maximaal 1 miljard dollar (ruim 854 miljoen euro) eigen aandelen inkopen. Het Zwitserse bedrijf kondigde aan dat de inkoop donderdag begint en voor het einde van het jaar moet zijn afgerond.
Oa Glasenberg op bezoek bij Poetin. Jongens onder elkaar. :-)
Glencore Is Going to Get Crazy Rich on Coal Next Year
Stock Markets4 hours ago (Oct 31, 2018 06:40AM ET)
(Bloomberg) -- Glencore (LON:GLEN) Plc’s coal mining business will eclipse its copper unit next year and become the world’s biggest commodity trader’s most profitable operation.
Despite making a lot of noise about its electric vehicle-focused mines such as nickel, copper and cobalt, Glencore has continued to buy more coal assets, adding rival Rio Tinto’s Australian operations to its portfolio this year. That, along with soaring coal prices, will see profit jump to $6.2 billion next year, according to a presentation.
Coal-mining profit will eclipse copper earnings -- which are forecast by analysts to be about $5.5 billion -- for the first time since the trading house sold shares in London in 2011.
Coal producers have been raking in profit as the price of the dirtiest fuel soars. Those gains have been underpinned by rising Chinese demand for high-quality imported coal, while many in the mining industry are reluctant to build new capacity as banks and investors shun the sector.
Glencore said its record coal profit will be driven by an almost 10 percent gain in shipments, while costs will fall from $52 a ton to $49 a ton
Met al die centen kunnen ze katanga wel eens uitkopen.
Norway fund may have to offload $1bn stake in Glencore in shift away from coal
SLO – Norway's $1-trillion sovereign wealth fund may have to sell its $1-billion stake in commodities giant Glencore, among other companies that derive more than 30% of their revenue from coal, to meet proposed tighter ethical investing rules.
Under the centre-right government's plan, expected to be adopted by Norway's parliament on Wednesday, the world's largest fund would no longer invest in companies that mine more than 20-million tonnes of coal annually or generate more than 10 GW of power with coal.
Environmental campaigners Greenpeace and Urgenwald said the new guidelines mean the fund would have to divest its stakes in Glencore, in which the fund has a stake of 2.03%, worth $1-billion, at the end of 2018, according to fund data.
The fund would also have to sell its 2.16% holding in miner Anglo American, worth $620-million, they added, citing their own analysis.
The fund, Glencore and Anglo American all declined to comment.
"What this does do ... is give a very clear signal to both governments and companies that the time for financing fossil fuels is coming to an end, for the benefit of both people and planet," said Martin Norman, Sustainable Finance Campaigner at Greenpeace in Norway.
Other divestments would include the fund's 1.39% stake in Germany's RWE worth $186-million, its 2.22% holding in Australia's South32 worth $266-million and the 1.03% it owns of Germany's Uniper among others, the green campaigners said.
The proposed rules on investing in coal, part of a broader shift to renewable energy, led the fund to sell its stakes in 83 mostly coal-producing companies, such as Peabody Energy and Coal India, as well as power producers ranging from Portland General Electric to Korea Electric Power.
The first major fund to do so, the decision in 2015 prompted other long-term investors to set similar guidelines, including German insurer Allianz later that year.
Parliament is expected to back the plan as the ruling centre-right coalition has a majority in the assembly.
Uniper said its generation capacity globally was less than one-third coal-based, adding that it aims to use more low-carbon fuels and had already cut its carbon dioxide (CO2) emissions by some 20% since 2016.
"We see ourselves as partners in the energy transition and want to accompany it constructively," a Uniper spokeswoman said.
RWE said its transformation plan includes not building any new coal-fired power plants, and it added that it will invest up to 1.5-billion euros annually in new renewable energy projects once its transaction with EON is completed.
"By the end of 2019, more than 60% of RWE's plants will be able to supply electricity with little or no CO2 emissions," a spokeswoman said.
South32 declined to comment, while BHP Billiton and Enel were not immediately available for comment.
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