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March 27, 2011, 8:05 p.m. EDT

Glencore to Launch Hong Kong Offering by End of April

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By Alison Tudor

HONG KONG—Swiss commodities trader Glencore International AG plans to kick off the Hong Kong retail portion of a stock offering aimed at raising up to $10 billion toward the end of April, a person familiar with the matter said.

In the past few weeks, Glencore's management team, led by Chief Executive Ivan Glasenberg , has met with investors in Asia and the U.S., and the firm has appointed more banks to help its sale of shares through a dual listing in Hong Kong and London, despite choppy markets, people familiar with the matter said.

Initial feedback from investors has been positive, said one of the people, especially from Glencore's trading partners, which banks have approached on behalf of the Baar, Switzerland, firm.

Glencore had previously mandated Citigroup /zigman2/quotes/207741460/composite C -5.47% Inc., Credit Suisse Group /zigman2/quotes/202835784/composite CS -4.92% AG and Morgan Stanley /zigman2/quotes/209104354/composite MS -3.87% to coordinate the dual listing, the people familiar with the situation said.

In addition, other banks have been given smaller roles in the offering. BNP Paribas SA, Bank of America /zigman2/quotes/200894270/composite BAC -4.90% Merrill Lynch, Barclays /zigman2/quotes/206581728/composite BCS -3.30% PLC, Société Générale SA and UBS /zigman2/quotes/206172872/composite UBS -4.24% AG are bookrunners. London-based Liberum Capital Ltd. is a co-manager of the share offering.

The value of Glencore's holdings in publicly listed companies such as Xstrata PLC dipped after Japan's earthquake on March 11 but have since rebounded.

In the immediate wake of Japan's earthquake, capital-raising plans for companies from a French pay-television operator to a Singapore engineering concern were canceled, delayed or scaled back. But markets subsequently seem to be regaining their poise.

Glencore is a leading force in the supply of commodities and raw materials like aluminum, copper, oil and wheat. The company has been closely owned and operated by a small group of partners since its founding 37 years ago.

A $2.2 billion convertible-bond offering at the tail end of the global financial crisis valued the company at $35 billion. Now the firm's enterprise value is likely to range from $50 billion to $60 billion, a person familiar with the matter said.

Some big anchor investors are already lined up for a piece of the initial public offering, thanks to that December 2009 bond issue. They include Government of Singapore Investment Corp., China's Zijin Mining Group /zigman2/quotes/203833875/delayed CN:601899 +1.15% Co. and BlackRock /zigman2/quotes/207946232/composite BLK -6.42% Inc. These investors have the right to convert their bonds into Glencore shares after the listing.

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US : U.S.: NYSE
$ 64.45
-3.73 -5.47%
Volume: 34.40M
Feb. 27, 2020 4:10p
P/E Ratio
8.00
Dividend Yield
3.17%
Market Cap
$143.62 billion
Rev. per Employee
$479,167
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/zigman2/quotes/202835784/composite
US : U.S.: NYSE
$ 11.59
-0.60 -4.92%
Volume: 5.60M
Feb. 27, 2020 4:10p
P/E Ratio
8.71
Dividend Yield
N/A
Market Cap
$29.70 billion
Rev. per Employee
$743,916
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/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 45.41
-1.83 -3.87%
Volume: 26.63M
Feb. 27, 2020 4:10p
P/E Ratio
8.76
Dividend Yield
3.08%
Market Cap
$72.39 billion
Rev. per Employee
$831,709
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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 29.13
-1.50 -4.90%
Volume: 120.38M
Feb. 27, 2020 4:10p
P/E Ratio
10.58
Dividend Yield
2.47%
Market Cap
$267.36 billion
Rev. per Employee
$543,289
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/zigman2/quotes/206581728/composite
US : U.S.: NYSE
$ 7.84
-0.27 -3.30%
Volume: 10.08M
Feb. 27, 2020 4:10p
P/E Ratio
N/A
Dividend Yield
5.73%
Market Cap
$36.44 billion
Rev. per Employee
$458,292
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/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 11.28
-0.50 -4.24%
Volume: 4.55M
Feb. 27, 2020 4:10p
P/E Ratio
9.92
Dividend Yield
6.47%
Market Cap
$42.78 billion
Rev. per Employee
$703,264
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/zigman2/quotes/203833875/delayed
CN : China: Shanghai
¥ 4.41
+0.05 +1.15%
Volume: 169.46M
Feb. 27, 2020 3:00p
P/E Ratio
27.14
Dividend Yield
2.27%
Market Cap
¥110.65 billion
Rev. per Employee
¥5.78M
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/zigman2/quotes/207946232/composite
US : U.S.: NYSE
$ 475.82
-32.65 -6.42%
Volume: 1.26M
Feb. 27, 2020 4:10p
P/E Ratio
16.72
Dividend Yield
3.05%
Market Cap
$78.91 billion
Rev. per Employee
$952,953
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