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Glencore plans a secondary ASX listing to back its copper push
Glencore expects to qualify for the ASX 200 within 12 months, a step that would require about A$1.5 billion of Australian market capitalization.
Glencore plans to seek a secondary listing on the Australian Securities Exchange to draw from a large pool of mining-focused capital and support its copper growth strategy, Mining.com reports. The company expects to list in October and said the move would strengthen its position for potential acquisitions. Glencore’s chief executive Gary Nagle said the company expects to qualify for inclusion in the benchmark ASX 200 index within 12 months, which it would need roughly A$1.5 billion in Australian market capitalization to meet, before eventually working toward the ASX 100 threshold of about A$5.5 billion. The announcement helped lift Glencore shares by 4.5% in London. The planned listing also reflects rising competition for mining finance between London and Australia, while giving Glencore access to investors with domestic investment mandates. Mining.com adds that Australia’s pension assets are forecast to almost triple to A$12.4 trillion by 2045, according to Deloitte, and Nagle said existing Australian shareholders face limits on overseas investments, making a local listing a way to unlock more capital. The move comes as the six-month standstill following Glencore’s unsuccessful merger discussions with Rio Tinto expires. Jefferies analysts said the ASX listing could make it easier for Glencore to pursue large acquisitions involving Australian-listed companies, while RBC Capital Markets said the proposal may also raise Glencore’s profile if merger talks with Rio resume. Mining.com also notes that while some investors welcomed the plan, some fund managers questioned whether Glencore could build enough trading liquidity without issuing new shares or pursuing a major transaction.
Latest closeCopper $6.632 ▲1.8%