Glencore to Raise $10 Billion From Initial Public Offering
The company priced the about 1 billion shares on offer at 480 pence ($7.91) to 580 pence apiece, the people said, declining to be identified before an announcement.
A phone call to Glencore’s offices in Baar, Switzerland wasn’t answered outside of regular business hours. Reuters reported the pricing earlier, citing a person it didn’t identify.
The IPO will be the largest since General Motors Co. sold new stock last year.
Glencore, which changed its name from Marc Rich & Co. after the management bought out former fugitive U.S. financier Marc Rich in 1994, is ending more than three decades of operating as a closely held partnership. Four analyst reports last month from banks advising on the IPO estimated the company’s value at an average range of $52.3 billion to $68.7 billion.
The trader of commodities including coal, oil and metals said last month it was seeking to raise $6.8 billion to $8.8 billion from the sale of new stock, while existing holders may sell an additional $2.2 billion in shares for tax purposes. It plans to use the funds for expansion and acquisitions.
Citigroup Inc., Credit Suisse Group AG and Morgan Stanley are managing the IPO as global coordinators, along with Bank of America Corp. and BNP Paribas as joint bookrunners. Barclays Plc, Societe Generale SA and UBS AG were appointed co- bookrunners and Liberum Capital Ltd. as a syndicate member.
Glencore employs 2,000 people at trading units across 40 countries and more than 50,000 people at its industrial operations, its website shows. Rich founded the company as Marc Rich & Co. in 1974 after spending 21 years at Philipp Bros., then the biggest commodities trader. He sold his share to management 20 years later and the company was renamed Glencore, short for “global energy commodity resources.”
Glencore is the biggest shareholder in Xstrata Plc (XTA), the world’s largest exporter of power-station coal, with a 34.5 percent stake.