Glencore prices IPO at $8.56 per share

Glencore, one of the world’s largest mining and commodities trading companies, has set the price per security ahead of an initial public offering at $8.56 in London and $8.50 in Hong Kong, valuing the company at $59.2 billion, the company said on Thursday.

Trading will start on May 24 in London and on May 25 in Hong Kong. Glencore will offer investors 1.14 billion shares, of which 31.25 million shares will be sold in Hong Kong and the remaining stock in London.

Bank of America Merrill Lynch acts as a bookrunner for the deal.

Glencore has previously said it expected to raise nearly $7.9 billion from selling new shares and $2.1 billion from a secondary share offer by existing shareholders. The company plans to use the funds to increase its stake in the Kazakhstan-based zinc producer Kazzinc, finance capital expenditure in the next three years and repay its debt.

Glencore has stakes in some of the world’s leading commodity producers, including Russia’s aluminum giant RusAl.

MOSCOW, May 19 (RIA Novosti) 

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