Mining Giant Glencore Looks Beyond London With Secondary ASX Listing
Glencore will launch a secondary listing in Australia in the latest blow to London’s ailing stock market as miners continue to eye opportunities away from the UK. The mining and trading juggernaut, which is among the largest companies on the FTSE 100 boasting a market cap of £64.4bn, is pursuing the listing following its group’s long-standing complaint that its shares are undervalued and there is…
Glencore, a prominent mining and trading business with a 64.4 billion-pound market capitalization and a prominent presence on the London Stock Exchange, is planning to expand its investor base and enhance trading liquidity by listing on the Australian Securities Exchange (ASX). The decision comes amid the UK stock market's struggles and as miners explore opportunities beyond London.
Glencore's CEO, Gary Nagle, highlighted Australia as a home to a substantial and rapidly growing pool of long-term investment capital, and a platform for engaging with a sophisticated investor base in the global resources sector. Following the announcement, the company's shares surged by 3.5 percent, trading at 570.3 pence. The Anglo-Swiss commodities firm has substantial mining operations in Australia and is heavily invested in the nation's coal mining sector.
Glencore's CEO paid a visit to Australia earlier this year to present the idea of a potential listing to shareholders, as previous discussions of a merger with Rio Tinto did not materialize. The ASX expressed its support for Glencore's intent to pursue a listing on its market, emphasizing the global recognition of the exchange as the ideal home for world-class resources companies.
This move is not Glencore's first attempt to seek liquidity in Australia, as other London-listed miners have also considered it, raising concerns about the UK's diminishing role as the industry's capital market hub. The London Stock Exchange recently lost out on BHP's primary listing, with the Australian firm opting for its domestic market.
Rio Tinto, which holds its primary listing in the UK, faced an activist push to review its position on the London exchange, but shareholders ultimately rejected the proposal. Industry experts, such as Russ Mould, investment director at AJ Bell, express concerns that Glencore's announcement could further weaken the UK's standing as a mining sector hub.
However, Anglo American, which is merging with Canadian miner Teck for $39.3 billion, has chosen to maintain its primary listing in the UK while having a secondary listing in Toronto.
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