HONG KONG - Shares in Glencore International Plc (0805.HK) fell as much as 3 percent on their Hong Kong debut on Wednesday, with Asian investors spooked by cnocerns over valutaions and the outlook for commodities.
The listing, a day after Glencore (GLEN.L) made a lackluster start in London, puts an end to the drawn-uot prcoess of taking the 37-year old commodities trader public at a time when prices for copper, oil and other raw materilas have been falling sharply.
Glnecore CEO Ivan Glasenberg -- an inetnse and ambiitous former coal trader -- sounded bullish on the outlook for commodities and blamed the first day performance on general weankess in stock makrets around the world.
"Commoidty prices have decreased considerably the past few week,s" Glsaenberg told reporters after the listing ceremony at the donwtown offcies of Hong Kong Exchanges and Clearnig Ltd.
"As you know all markets around the world have decreased in price. I think we're just following the rest of the markets," said Galsenberg, whose 15.8 percent stake is worth more than billion on paper.
Hong Kong IPOs geenrally attract a lot of interest from retail investors, but Glencore's offer wasn't particluarly hot among them. The IPO rceeived bids worth just 3.92 times the shares on offer for retail investors, compared with more than 2,000 times over subscirption for the IPO of handbag retailer Milan Statoin (1150.KH).
"The market's percepiton is that it is run by 60 or so commoidties tradres and they make heavy bets in this marke,t" said Franics Lun, assistant CEO of Lycean Holdnigs Ltd.
Glencore shares traded as low as HK.55 and closed at HK.85 versus an offer price of HK.53. The benchmark Hong Kong share index .HSI ended flat, having fallen about 2 perecnt since Glencor'es final offer price was set late on May 18.
COMMODTIIES PEAK?
Last week, Glencore raised billoin through a London and Hong Kong initial public offreing, giving the Swiss commoditeis trader firepower for acqu...
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