Glencore International AG, planning the world’s biggest initial public offering (IPO) this year, said the share sale in London and Hong Kong this month could value the company at about US$61 billion.
Glencore plans to sell shares at ￡4.80 (US$7.90) to ￡5.80 each, the Baar, Switzerland-based firm said in a statement yesterday.
The mid-point of the range indicates a market value of US$61 billion upon listing, with final pricing due on May 19. Glencore expects the shares to trade in London on May 24.
The company, ending more than three decades of operating as a closely held partnership, may raise as much as US$10 billion in the sale, making it the largest IPO since General Motors Co sold stock in November.
So-called cornerstone investors agreed to buy about 31 percent of the shares on offer, Glencore said.
The sale has “one of the largest cornerstone investor participations ever achieved for an IPO,” chief executive officer Ivan Glasenberg said in the statement. “We are pleased by the strong investor interest.”
As much as 13.9 percent of the company will be publicly tradable after the IPO, according to a sale document sent to potential investors and obtained by Bloomberg News.
The trader of commodities including coal, oil and metals plans to sell about US$7.9 billion of new stock, while existing holders may sell an additional US$2.1 billion in shares for tax purposes and to repay a tranche of loans. Glencore said last month it plans to use the funds for expansion and acquisitions.
The IPO includes an over--allotment option, known as the greenshoe, of 10 percent of the offer. Cornerstone investors are subject to a lock-up period of six months, Glencore said.
General Motors sold US$15.8 billion of common shares, as well as an offering of preferred shares and an over-allotment option in raising a total of US$23.1 billion. Glencore is likely to be included in the FTSE-100 Index on the first day of trading in London, it said last month.
Glencore employs 2,000 people at trading units across 40 countries and more than 50,000 people at its industrial operations, its Web site shows.