Glencore plans huge US$12.1b listing
By Clara Ferreira-Marques and Elzio Barreto |
April 15, 2011, Friday
|
Print Edition
Print Edition
TOP commodity trader Glencore aims to raise up to US$12.1 billion with a dual listing that will boost firepower for deals at the height of a resources boom and make paper fortunes for its publicity-shy partners.
The long-awaited details of the offer, set to be the largest in London, were outlined.
They did not, however, include the appointment of a new non-executive chairman - a requirement for its listing.
The absence, though not unheard of at this stage in the listing process, was unexpected and underscored concerns about Glencore's corporate governance among some potential investors.
"It is an important decision, we are just working through the final process. We have chosen someone, so we should announce it shortly," Chief Executive Ivan Glasenberg said, declining to comment further.
Three candidates were on the shortlist several days before the document was published, including former French Foreign Legionnaire Simon Murray and two others. The new chairman will sit on an eight-strong board alongside Glasenberg.
Five non-executive director positions were announced with yesterday's statement, but at least one of the directors, Peter Coates, has previous direct links with the group.
He was chairman until earlier this week of Minara Resources, a nickel producer majority owned by Glencore.
Tony Hayward, the former head of BP who was ousted over his handling of the Gulf of Mexico oil spill, will be the senior independent director.
Glencore, the world's largest commodities trader, joins the dots of the global economy - mining, producing and shipping raw materials across the globe to car makers, oil companies, utilities, steel makers and food giants.
Founded in 1974 by trading sensation and later United States fugitive Marc Rich, Glencore has until now held on to a fiercely prized tradition of public discretion, but its May listing will propel the group and its top management into the limelight.
The sale, which has generated a buzz akin to Goldman Sachs' listing in 1999, will generate millions of dollars in paper windfalls for Glencore's executives - not least Glasenberg himself, said to own a 15 percent stake.
Glasenberg said Glencore had received a "very positive" reception from investors when management gauge demand for the deal.
Glencore is targeting an offer size of between US$9 billion to US$11 billion. The London part of the offer should raise up to US$8.8 billion, while the Hong Kong leg of the deal could raise up to US$2.2 billion.
If a 10 percent greenshoe over-allotment is exercised, the total IPO proceeds rise to US$12.1 billion.
Glencore is expected to sign up "cornerstone" shareholders to its IPO, but these may be made public only when it publishes its prospectus. Glencore officials have met in the past weeks with sovereign wealth funds in Asia and the Middle East, and high net worth investors to garner support.
The long-awaited details of the offer, set to be the largest in London, were outlined.
They did not, however, include the appointment of a new non-executive chairman - a requirement for its listing.
The absence, though not unheard of at this stage in the listing process, was unexpected and underscored concerns about Glencore's corporate governance among some potential investors.
"It is an important decision, we are just working through the final process. We have chosen someone, so we should announce it shortly," Chief Executive Ivan Glasenberg said, declining to comment further.
Three candidates were on the shortlist several days before the document was published, including former French Foreign Legionnaire Simon Murray and two others. The new chairman will sit on an eight-strong board alongside Glasenberg.
Five non-executive director positions were announced with yesterday's statement, but at least one of the directors, Peter Coates, has previous direct links with the group.
He was chairman until earlier this week of Minara Resources, a nickel producer majority owned by Glencore.
Tony Hayward, the former head of BP who was ousted over his handling of the Gulf of Mexico oil spill, will be the senior independent director.
Glencore, the world's largest commodities trader, joins the dots of the global economy - mining, producing and shipping raw materials across the globe to car makers, oil companies, utilities, steel makers and food giants.
Founded in 1974 by trading sensation and later United States fugitive Marc Rich, Glencore has until now held on to a fiercely prized tradition of public discretion, but its May listing will propel the group and its top management into the limelight.
The sale, which has generated a buzz akin to Goldman Sachs' listing in 1999, will generate millions of dollars in paper windfalls for Glencore's executives - not least Glasenberg himself, said to own a 15 percent stake.
Glasenberg said Glencore had received a "very positive" reception from investors when management gauge demand for the deal.
Glencore is targeting an offer size of between US$9 billion to US$11 billion. The London part of the offer should raise up to US$8.8 billion, while the Hong Kong leg of the deal could raise up to US$2.2 billion.
If a 10 percent greenshoe over-allotment is exercised, the total IPO proceeds rise to US$12.1 billion.
Glencore is expected to sign up "cornerstone" shareholders to its IPO, but these may be made public only when it publishes its prospectus. Glencore officials have met in the past weeks with sovereign wealth funds in Asia and the Middle East, and high net worth investors to garner support.
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