Glencore narrows float price range

GLENCORE has narrowed the price range for its $11bn (£6.8bn) float at the higher end of its range, despite a crash in commodity prices last week.

The commodity trader began its investor roadshow with a 480p-580p price range, the midpoint of which values the company at around $60bn. However, it is now targeting a narrower price range of 520p-580p.

Analysts suggested on Friday that Glencore could see its credit rating upgraded by S&P after a float. Miriam Hehir of RBC Capital Markets, which is not on the deal, also said: “Moody’s negative outlook... continues to look out of date.” Hehir also estimates that Glencore will put $2bn towards paying back its most expensive, seven per cent debt after its planned buyout of Kazzinc, leaving $5.3bn for expansion.