Glencore gets a green light in Hong Kong

HONG Kong has given Glencore permission for the Asian leg of its float, according to sources close to the commodities giant.

The commodities and trading giant, which is valued at $60bn (£37bn), received a letter on Friday giving it the go-ahead for its Hong Kong listing as part of a dual London-Hong Kong listing plan first disclosed by City A.M. in December.

The initial public offering (IPO), which will be London’s biggest ever float, had originally been considered a UK-only deal, but sources close to the deal told City A.M. that its management have been persuaded to pursue a dual listing in Asia to be closer to the region’s high-growth, commodity-hungry economies.

Glencore is understood to be interested in raising $10bn through the deal, which will transform the company from its traditional partnership model, allowing many of its senior staff to cash out.

Analysts have been told that mid-May is a preliminary deadline, after which the company will have to redo its accounts in order to float. BlackRock fund manager Evy Hambro, who holds a number of Glencore’s convertible bonds, confirmed last week that he is expecting the IPO to get off the ground in the second quarter of this year.

Analysts were also given a deadline of last Friday to complete their notes after a series of investor meetings by Glencore chief executive Ivan Glasenberg.