Glencore’s planned Australian debut draws interest as investors look past coal

Glencore, the world's largest thermal coal exporter, is planning to debut on the Australian Securities Exchange (ASX) in October, aiming to tap into the growing pool of institutional capital. The company's copper growth ambitions are expected to outweigh concerns about its thermal coal exposure, according to analysts and investors.

JPMorgan and UBS held investor briefings on the proposed listing, describing the sessions as well attended. While the CEO believes Glencore can achieve inclusion in the S&P/ASX 200 index within 12 months, analysts see momentum that may propel the stock into the top-100 index sooner, potentially by March or April the following year.

Australian investors have become increasingly comfortable with secondary listings, with 37 metals and mining companies now having CDIs on the ASX, up from 22 in early 2020. Glencore's copper segment, which generates about 30% of its profit, is in strong demand due to its role in electrification and AI technologies. As the company's assets are expected to generate 50% of its earnings from copper by 2030 if developed on schedule, analysts view copper growth prospects as an attractive investment opportunity that could outweigh any concerns about its thermal coal operations.