Glencore Slumps Below 100 Pence a Share for First Time in London

  • Stock is more than 80% below 530 pence IPO price in 2011
  • Investors retreating from commodities on China economy concern

Glencore Plc, the commodity trader and mining company headed by billionaire Ivan Glasenberg, slumped to a record low in London trading amid a rout in commodity prices on concern of a deepening slowdown in China, the world’s biggest consumer of raw materials.

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The stock declined below 100 pence for the first time, falling 14 percent to 99.9 pence at 1:23 p.m. in London. It’s plummeted more than 80 percent since a $10 billion initial public offering in London and Hong Kong in 2011 where the company sold shares at 530 pence each. Glencore is the worst performer on the U.K.’s benchmark stock index this year.

Investors are retreating from commodities as China’s economy expands at the slowest pace since 1990, with prices of raw materials on the Bloomberg Commodity Index including copper and zinc plunging last month to the lowest since the financial crisis as supplies outstrip demand.

Glencore sold $2.5 billion of new shares on Sept. 16 and plans to trim copper production by 20 percent over the next 18 months by shutting two flagship operations in Africa. The initiatives are part of a wider $10 billion debt-reduction plan designed to help it protect its credit rating amid the price rout that’s eroding profits at all of the biggest mining companies.

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