Glencore IPO values company at about $61 billion

Glencore International AG, the world's biggest commodities trader by revenue, today said that its initial public offering (IPO) in London and Hong Kong this month is expected to value the company at about $61 billion.

Glencore, which is planning the world's biggest IPO this year, has set a price range at between 480 pence and 580 pence per share for offer of ordinary shares to global institutional investors.

The Baar, Switzerland-based company expects to raise approximately $10 billion comprising a primary component of approximately $7.9 billion, and secondary sales by existing shareholders of approximately $2.1 billion.

Its IPO will include an offer to global institutional investors as well as to retail and professional investors in Hong Kong. The mid-point of the price range implies Glencore's market capitalisation of approximately $61 billion.

Glencore has entered into agreements with a select group of cornerstone investors that include the emirate of Abu Dhabi, have agreed to subscribe for approximately 31 per cent of the total offer. This represents one of the largest cornerstone books by value ever achieved for an IPO.

The Financial Times today said that Aabar, part of Abu Dhabi 's sovereign wealth fund International Petroleum Investment Company, will become the biggest investor after Glencore executives.