Wednesday 20 November 2019

The $ 9.6bn man mines a rich vein at Glencore

Glencore chief executive officer Ivan Glasenberg
Glencore chief executive officer Ivan Glasenberg

Jesse Riseborough

GLENCORE chief executive officer Ivan Glasenberg will own 15.8pc of the commodities company after its initial public offering (IPO) this month, according to a person who has the IPO prospectus. That may give the former coal trader a $9.6bn stake.

Mr Glasenberg (54) will be the largest holder in Baar, Switzerland-based Glencore with 1.086 billion shares. Senior executives Daniel Mate and Telis Mistakidis own about 6pc each.

Mr Glasenberg, an accounting graduate, has been at Glencore since 1984 and CEO since 2002. He was part of a management-led buyout of the business from founder and former fugitive US financier Marc Rich in 1994, and is now heading a $10bn IPO.

Based on the mid-point of the pricing range, Glencore would be valued at about $61bn upon listing, giving Mr Glasenberg a stake of about $9.6bn.

"Arguably one of the most experienced CEOs, Mr Glasenberg typifies the entrepreneurial culture throughout the organisation," Olivia Ker, a London-based analyst at UBS AG, said in a pre-IPO report last month. "It is the entrepreneurial culture of Glencore that comes through most strongly as the driver of its growth over the past 30 years."

Mate and Mistakidis, joint heads of Glencore's zinc, copper and lead unit, have stakes valued at about $3.7bn each, based on the company's estimated market value.

Goldman Sachs Group's IPO, 12 years ago this week, valued then-CEO Henry Paulson's stake at $219m.

Blackstone Group LP's June 2007 share sale valued co-founder Stephen Schwarzman's stake at $8.8bn.

Glencore plans to sell shares at 480 pence ($7.95) to 580 pence each, the company said yesterday in a statement. Final pricing is due around May 19. Glencore expects the shares to trade in London on May 24. Analysts had estimated the company's pre-IPO valuation at $52.3bn to $68.7bn.

Glencore has trading units across 40 countries, as well as industrial operations and stakes in listed mining companies. (Bloomberg)

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