Switzerland's Glencore Plans $9-11 Bln IPO: Reports

Swiss commodities trader Glencore International AG is planning to raise $9 billion to $11 billion through an initial public offering in London and Hong Kong, media reported Tuesday citing people familiar with the matter.

The IPO documents are expected to be filed as early as Thursday for a deal that would value Glencore at about $60 billion.

On Thursday, the company is expected to announce that it will list 20 percent of its shares in London, and a further 5 percent in Hong Kong, where the company may trade under the ticker 805.

As per the reports, the company will announce a price range for the IPO on May 4, when it is scheduled to start meeting potential investors. Glencore would use the proceeds of the offering to consolidate its European presence and to buy larger assets.

The worldwide stock markets are just recovering from Japan's nuclear disaster and unrest in the Middle East, and the planned IPO of the world's largest commodities trader will be the world's biggest this year.

The IPO is said to be managed by Citigroup Inc. (C), Credit Suisse Group AG and Morgan Stanley (MS).

As per the reports, the company is also expected to announce a replacement for its Chairman Willy Strothotte, as well as a new Board of Directors when it confirms its intention for IPO.

Baar, Switzerland-based Glencore is an integrated producer and marketer of commodities. It is a privately-held group owned by its management and employees. The company employs over 2,700 people in its marketing operations, and over 54,800 people in industrial operations. In 2010, the company's turnover was $145 billion, and total assets were $79.8 billion.

Glencore currently has interests in various publicly listed companies, including 34.5 percent in miner Xstrata Plc (XTA.L), and 8.8 percent in United Co. Rusal, the world's largest aluminum producer. It also holds 74.4 percent of Katanga Mining Ltd, and 70.5 percent in Australian nickel producer Minara Resources, among others. The value of Glencore's 10 largest holdings reportedly climbed to $32.6 billion as of today.

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