Glencore set to enter FTSE 100 in London debut

24th May 2011, Comments 0 comments

Swiss commodities giant Glencore made a tepid stock market debut on Tuesday but is still set to become the first company in 25 years to join the FTSE 100 index on its first official trading day.

In late afternoon deals, Glencore shares fell 0.66 percent to 526.50 pence, compared with last week's introduction price of 530 pence.

The group, whose shares will launch in Hong Kong on Wednesday, raised about $10 billion (7.0 billion euros) last week in the world's biggest initial public offering (IPO) this year.

The London Stock Exchange welcomed the historic flotation which it said valued Glencore at a total of $59.2 billion.

Glencore, which is based in Baar, Switzerland, is now on track to become only the third company to be admitted under the FTSE 100's fast-entry rule.

"As one of the largest IPOs in history, we are delighted Glencore has chosen the London Stock Exchange," LSE Chief Executive Xavier Rolet said in a statement.

"Its London listing will give it exposure to the world's deepest pool of international capital; entry to one of the world's most tracked and traded indices, the FTSE 100; and access to a global community of financial and market expertise.

"The size and success of Glencore's flotation shows London is very much open for business and that its investor base has the appetite and capability to support large fundraisings."

The Swiss company is the world's biggest commodities trader, with products including oil, coal, gold and foodstuffs, but also owns a number of mines worldwide.

Conditional trading -- unofficial trading of the shares on condition that they would eventually be fully listed -- began last week in London.

© 2011 AFP

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