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.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS