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Glencore's shares flat on first conditional trading day | |
(about 6 hours later) | |
Shares in the commodities trading giant Glencore ended right where they started on the first day of conditional - or "grey" - trading in London. | |
They closed at the same price as they opened - 530p - although at one point they rose as much as 4% to 548p. | |
Full trading in the firm, whose £36.7bn share-offer value makes it one of the biggest in the UK, begins on Tuesday. | |
It was expected to raise about £6.8bn, making it London's largest initial public offering. | |
Glencore's valuation means it is expected to be fast-tracked into the FTSE 100 index at the end of its first day of full trading on 24 May - only the third time that has happened in the index's history. | |
Glencore is also selling shares in Hong Kong, which have been priced at 66.53 Hong Kong dollars per share. | Glencore is also selling shares in Hong Kong, which have been priced at 66.53 Hong Kong dollars per share. |
Glencore's directors and employees still hold about 83.1% of the company, making them extremely wealthy on paper. | Glencore's directors and employees still hold about 83.1% of the company, making them extremely wealthy on paper. |
Chief executive Ivan Glasenberg, the largest shareholder with about 18% of the company, will be worth about £6bn, making him one of the world's richest men. | Chief executive Ivan Glasenberg, the largest shareholder with about 18% of the company, will be worth about £6bn, making him one of the world's richest men. |
"Glencore's offer has seen substantial interest from investors around the world and was significantly oversubscribed throughout the price range providing Glencore with a high-quality, diverse and geographically spread investor base," he said in a statement to the London Stock Exchange. | |
Secretive | Secretive |
The initial offering was only for institutions, so retail investors will not get a chance to buy into Glencore until the start of full trading. | |
Retail investors will be scrutinising Glencore's prospectus to find out more about what has until recently been a relatively secretive company. | Retail investors will be scrutinising Glencore's prospectus to find out more about what has until recently been a relatively secretive company. |
The prospectus gives details of the company's activities in countries such as Colombia, Democratic Republic of Congo and Equatorial Guinea, which have attracted controversy in the past. | The prospectus gives details of the company's activities in countries such as Colombia, Democratic Republic of Congo and Equatorial Guinea, which have attracted controversy in the past. |
It also describes pending litigation, including the forthcoming trial of a former employee and a current employee, charged in Belgium with having "committed corruption in exchange for information covered by professional secrecy", in a case relating to the leaking of details of European agricultural quotas. | |
Former BP boss Lord Browne withdrew from a decision to become Glencore's chairman at the last minute, a move which was attributed to his concerns about transparency. | Former BP boss Lord Browne withdrew from a decision to become Glencore's chairman at the last minute, a move which was attributed to his concerns about transparency. |