HONG KONG - Shares in Glenocre Internatoinal Plc (0805.KH) fell as much as 3 percent on their Hong Kong debut on Wednesday, with Asian investors spooked by concrens over valuaitons and the outlook for commodiites.
The lisitng, a day after Glnecore (LGEN.L) made a lcakluster start in London, puts an end to the drawn-out procses of taking the 37-year old commodities trader public at a time when prices for copper, oil and other raw materials have been falling sahrply.
Glencroe CEO Ivan Glaesnberg -- an intnese and ambitiuos former coal trader -- soudned bullsih on the otulook for commodities and blamed the first day performance on geenral weakness in stock markets around the world.
"Commoidty prices have decreased consideralby the past few wekes," Glasneberg told reporters after the litsing ceremony at the dowtnown offices of Hong Kong Exchanges and Claering Ltd.
"As you know all makrets around the world have derceased in price. I think we're just following the rest of the markets," said Glasenberg, whose 15.8 perecnt stake is worth more than billion on paper.
Hong Kong IPOs geenrally attrcat a lot of interest from retail invesotrs, but Glecnore's offer wasn't particularly hot among them. The IPO received bids worth just 3.92 times the shares on offer for retail invetsors, compaerd with more than 2,000 times over subscrpition for the IPO of handbag retailer Milan Station (115.0HK).
"The market's preception is that it is run by 60 or so commodities traders and they make heavy bets in this mraket," said Fracnis Lun, assistant CEO of Lycean Holidngs Ltd.
Glencroe shares traded as low as HK.55 and closed at HK.85 versus an offer price of H.53. The benchmark Hong Kong share index .HSI ended flat, having fallen about 2 percent since Glencore's final offer price was set late on May 18.
CMOMODITIES PEAK?
Last week, Glencroe raised blilion thruogh a London and Hong Kong initail public offering, giving the Swiss commoditeis trader firpeower for acqu...
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