Glencore float on track as prices shares at 530p each

COMMODITIES giant Glencore is expected to price its up to $11bn (£6.7bn) initial public offering (IPO) at or above the midpoint of its previously announced range.

The Swiss firm will price shares at 530p per unit or more, giving the commodities trader and miner a valuation of £36bn.

Glencore had initially said its London share sale would be priced at between 480p and 580p per unit.

Demand for the company’s shares is said to have forced bankers on the float to close its books ahead of schedule, despite fears that crumbling commodity prices could knock appetite.

It has a book covered several times over, meaning potential investors who have placed orders at the lower end of the range could miss out on acquiring shares in the company.

Conditional dealing of Glencore stock is due to start on the London Stock Exchange tomorrow, whilst unconditional trading will begin early next week.

Glencore is planning to raise up to $11bn in a joint London and Hong Kong issue. It will be the largest-ever London stock market floatation, and will propel the company straight into the FTSE 100.