Glencore confirms IPO price

[] — COMMODITY trader Glencore has confirmed the price of its bumper $11bn market debut at 530 pence, in the middle of its initial range, a level it hopes will secure a strong performance on debut.

The final decision to price at 530p per share was in line with earlier market expectations.

At that price – the exact midpoint of Glencore’s original 480p to 580p range, but just below the middle of narrower guidance issued earlier this week – the world’s largest diversified commodities trader will be worth £36.7bn ($59.31bn).

“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,” Glencore’s CEO Ivan Glasenberg said in a statement on Thursday.

Glencore, which is also listing in Hong Kong, is in the final stage of the potentially record-breaking initial public offering of what would be a 16.4% stake, assuming no overallotment and no conversion of its convertible bonds.

But with a 10% overallotment option likely to take the total size of Glencore’s offering to $11bn, it is set to be London’s largest-ever listing, overtaking Russia’s Rosneft, which raised $10.6bn in 2006.

Its market value will also propel the commodities trader straight into London’s FTSE-100 index of bluechip shares.