Glencore Shares Make Solid Debut
http://online.wsj.com/article/SB10001424052748704904604576332720032401098.html?mod=rss_whats_news_us_business&utm_source=twitterfeed&utm_medium=twitter#articleTabs%3Darticle
By BENOIT FAUCON And ALEX MACDONALD
LONDON—Glencore International PLC's shares rose in informal trade Thursday after the Swiss commodities producer and trading giant priced its initial public offering in the middle of a previously announced range, making it the largest-ever IPO in the U.K.
The London shares of Glencore's dually listed IPO started trading at 547 pence apiece on screens in London, even though the shares won't start officially trading until Tuesday at the earliest.
Bloomberg News
Share pricing information for Glencore is displayed on a stockbroker's computer screen at Shore Capital Markets on the first day of the company's conditional trading in London.
The company said an hour earlier that it would sell its shares at 530 pence each, the midpoint of its previously announced range, valuing the company at £36.7 billion ($59.3 billion), roughly in line with its goals. Shares were priced at $66.53 Hong Kong dollars in a simultaneous secondary listing of its shares in Hong Kong.
The move demonstrates investor confidence in Glencore, despite volatile commodity prices and a broader environment of limited investor appetite for listings.
"The significant level of investor interest reaffirms our belief that industry conditions and Glencore's business model today provide us with a compelling basis to continue to deliver and sustain superior returns," Glencore Chief Executive Ivan Glasenberg said in a statement.
The share sale will raise $10 billion prior to exercise of the overallotment option and $11 billion if the overallotment is exercised. The overallotment accounts for 10% of the global share offer.
Investors are closely watching the shares' debut in conditional trading—where shares can be traded on screens but aren't yet delivered—which started Thursday at 8 a.m. London time (3 a.m. ET). Investors are eyeing Glencore's movements to know whether the company will have enough support in the market to pursue ambitious expansion plans.
Glencore shares will start trading unconditionally in London on May 24 and in Hong Kong a day later.
For More GoTo...
http://online.wsj.com/article/SB10001424052748704904604576332720032401098.html?mod=rss_whats_news_us_business&utm_source=twitterfeed&utm_medium=twitter#articleTabs%3Darticle
All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.
No comments:
Post a Comment