COMMODITIES giant Glencore has taken on five additional banks to help it prepare for its possible float, sources yesterday told City A.M.
Swiss-based Glencore now has eight banks working on its IPO plan, which analysts have said will value the firm at up to $60bn (£37.3bn).
While Glencore has not officially confirmed that it will float, the firm has arranged an analyst meeting in the City next week to convince observers of the company’s value, in a move typically seen as the start of an IPO process.
Goldman Sachs and Bank of America Merrill Lynch are thought to be among the five new banks recently hired by Glencore, though neither commented yesterday.
Glencore’s existing banks – Citigroup, Credit Suisse and Morgan Stanley – either declined to comment or did not answer calls yesterday. Glencore also refused to comment.
Sources have previously said that Glencore is looking to raise up to £10bn in the London and Hong Kong markets, but a final decision on the float, its location or a target amount has not been announced.
Meanwhile, it was yesterday said that sovereign wealth funds in Qatar and China were in talks with Glencore over a possible investment role in the float.
The Qatar Investment Authority declined to comment, while the China Investment Corporation was not available.
Glencore posted a turnover of $106.4bn last year. It has assets valued at $66.3bn and owns a third of FTSE 100 miner Xstrata.
FAST FACTS | GLENCORE FLOAT
● Swiss firm Glencore is currently wholly owned by management and employees
● A float could be the biggest of 2011 if it goes ahead, allowing the firm to cash in on runaway demand for exposure to commodity prices