GLENCORE will begin trading on the Australian Securities Exchange (ASX) on Wednesday, giving local investors easier access to the miner and commodities trader and its growing copper exposure, Bloomberg reported.
The listing involves CHESS Depositary Interests (CDI), with each CDI representing one London-listed Glencore share. No new shares are being sold and the company is not raising capital.
Glencore hopes the move will broaden its investor base, particularly among Australia’s A$4.8 trillion pension industry, and help close its valuation gap with some diversified mining peers.
The company may also benefit from strong investor appetite for copper, which has rallied on expectations of rising demand from data centres, electricity grids and renewable energy.
Global X Management strategist Marc Jocum said Australian investors were seeking greater copper exposure. Glencore currently derives about a third of its revenue from copper but wants the metal to account for roughly half of its earnings mix.
The miner is targeting eventual inclusion in the S&P/ASX 100, which could attract passive investment. Betashares estimates its Australian-listed interests would need to reach about A$5.5bn in value to qualify.
One potential constraint is Glencore’s coal exposure. The group remains a major producer of both thermal and metallurgical coal, while some Australian pension funds have tightened restrictions on fossil-fuel investments.
The strength of demand may take time to emerge because Glencore is relying on existing London shareholders converting their stock into Australian CDIs.