Glencore International, the world's largest commodities trading company by revenue, aims to raise as much as US$11 billion (S$13.8 billion) in London and Hong Kong in the biggest initial public offering so far this year, according to people familiar with the situation, Todayonline reports.
The amount is about twice the US$5.5 billion that Hong Kong tycoon Li Ka-shing's Hutchison Port Holdings Trust raised on the Singapore Exchange last month.
Switzerland-based Glencore, which is set to announce the IPO tomorrow, is planning to list in London on May 24 and in Hong Kong on May 26.
London is set to be the primary listing venue for the stock, accounting for 75 per cent of the offering, while Hong Kong will be the secondary venue with the other 25 per cent, the sources said.
Glencore plans to start international roadshows from May 4 to May 13 and the indicative price range of the deal will be out on May 4.
If the world's economy had not slumped at the end of 2008 and financing had not severely contracted, Glencore would more than likely have gone for a listing a long time ago.
But the recovery in commodity prices following their tumble during the economic downturn and a strengthening of Glencore's credit position left the company with time on its hands.
Now the key question for Glencore is in its valuation. A US$2.2 billion convertible bond offering at the tail end of the global financial crisis valued the company at US$35 billion. Now the firm's enterprise value is likely to range from US$50 billion to US$60 billion, the sources said.
Big anchor investors are already lined up for a piece of the giant IPO, thanks to that December 2009 bond issue.
They include the Government of Singapore Investment Corp, China's Zijin Mining Group and United States investment firm BlackRock. These investors have the right to convert their bonds into Glencore shares after the listing.
Malaysia's Employees' Provident Fund (EPF) is also considering a stake after it was approached to subscribe to the IPO, Mr Shahril Ridza Ridzuan, its deputy chief executive officer for investment, said yesterday.
Mr Shahril said the EPF might also consider a stake in Malayan Sugar Manufacturing, the sugar refining unit of Felda Global. Malaysian Prime Minister Najib Razak said yesterday that state-owned Felda planned to sell its stake in the sugar unit in an IPO by July.
The IPO may raise as much as RM900 million (S$374.50 million), said Maybank Investment Bank chief executive Zafrul Aziz.
The amount is about twice the US$5.5 billion that Hong Kong tycoon Li Ka-shing's Hutchison Port Holdings Trust raised on the Singapore Exchange last month.
Switzerland-based Glencore, which is set to announce the IPO tomorrow, is planning to list in London on May 24 and in Hong Kong on May 26.
London is set to be the primary listing venue for the stock, accounting for 75 per cent of the offering, while Hong Kong will be the secondary venue with the other 25 per cent, the sources said.
Glencore plans to start international roadshows from May 4 to May 13 and the indicative price range of the deal will be out on May 4.
If the world's economy had not slumped at the end of 2008 and financing had not severely contracted, Glencore would more than likely have gone for a listing a long time ago.
But the recovery in commodity prices following their tumble during the economic downturn and a strengthening of Glencore's credit position left the company with time on its hands.
Now the key question for Glencore is in its valuation. A US$2.2 billion convertible bond offering at the tail end of the global financial crisis valued the company at US$35 billion. Now the firm's enterprise value is likely to range from US$50 billion to US$60 billion, the sources said.
Big anchor investors are already lined up for a piece of the giant IPO, thanks to that December 2009 bond issue.
They include the Government of Singapore Investment Corp, China's Zijin Mining Group and United States investment firm BlackRock. These investors have the right to convert their bonds into Glencore shares after the listing.
Malaysia's Employees' Provident Fund (EPF) is also considering a stake after it was approached to subscribe to the IPO, Mr Shahril Ridza Ridzuan, its deputy chief executive officer for investment, said yesterday.
Mr Shahril said the EPF might also consider a stake in Malayan Sugar Manufacturing, the sugar refining unit of Felda Global. Malaysian Prime Minister Najib Razak said yesterday that state-owned Felda planned to sell its stake in the sugar unit in an IPO by July.
The IPO may raise as much as RM900 million (S$374.50 million), said Maybank Investment Bank chief executive Zafrul Aziz.