Glencore close to hiring eight banks for float

GLENCORE, the Swiss commodity trading giant, is close to hiring eight banks to supervise its planned multi-billion-dollar London and Hong Kong listing, a person familiar with the matter said.

Glencore, valued earlier this year by one analyst at about $60bn (£36.7bn), is continuing to prepare for what could be a record London initial public offering (IPO), despite market turmoil scuppering several other flotations.

If Glencore decides to proceed with an offering, it is likely to hire Bank of America Merrill Lynch, Barclays Capital, BNP Paribas, Societe Generale and UBS to manage the listing, alongside its existing trio of financial advisers, the person said.

Citi, Morgan Stanley and Credit Suisse are likely to serve as joint global co-ordinators, the most senior role on an initial public offering (IPO), with the other five banks probably acting as joint bookrunners.

On Monday Glencore’s top management, led by chief executive Ivan Glasenberg, began what is expected to be several days of meetings with US fund managers who could support its float.

Glencore wants to swap a partnership structure for a public listing.