Glencore Set to Price $10 Billion IPO on May 19, Will Be the Largest IPO Since GM

Includes: C, CS, MS, OZM
by: Renaissance Capital IPO Research

Glencore, one of the world's largest suppliers of commodities and raw materials, is set to price its highly anticipated initial public offering on May 19. Glencore set a price range of £4.80 - £5.80 (US$8.00 - US$9.67), and is planning to sell $10 billion in shares (80% primary). At the midpoint of the range, Glencore's implied market cap is $61 billion. The company booked US$145 billion in sales and reported Net Income of US$3.8 billion in 2010.

The largest IPO since General Motors, Glencore's initial public offering is gaining significant interest. The company has been qualified for fast entry into major benchmark indices, and has secured cornerstone investments from several high profile investors. The cornerstone placing will account for 30% of the total deal, and investors such as Abu Dhabi's IPIC Aabar (US$850 million), Singapore's state investment arm Temesek (US$400 million), BlackRock (US$360 million), Credit Suisse Private Bank (NYSE:CS)(US$175 million) and Och Ziff (NYSE:OZM)(US$175 million), have already made public commitments.

Glencore's shares will debut on the LSE on May 24 under the symbol "GLEN.LN" and the HKEx on May 25 under the symbol "805.HK". Citi (NYSE:C), Credit Suisse and Morgan Stanley (NYSE:MS) are the lead underwriters.