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.