Tuesday, May 17, 2011

Glencore IPO

For people who are thinking of diversifying into the London Stock Exchange (LSE), perhaps you can take a look at this IPO – Glencore International.

Glencore is a Swiss-based company, one of the world's largest suppliers of commodities and raw materials, founded in 1974, over the years, it has expanded its operation into: metals, minerals, crude oil, oil products, coal, natural gas and agricultural products to international customers in the automotive, power generation, steel production and food processing industries.

How big is this company? It’s about US$50billion - $60billion in valuation, 80% held by private equity firms and state funds including Singapore GIC, China, Korea, Abu Dhabi and Kuwait state funds (CNBC). 20% will be open to the public and will be listed in both London and Hong Kong stock exchanges on the 24th May 2011.

This stock is very “hot”! It’s 4 times oversubscribed and every one is talking about it since we are in a commodity bull. However, I have to warn investors here that commodities are very volatile and its not suitable for investors with low risk appetite.

CNBC News

Happy investing,

Pauline Yong

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