HONG KONG - Shares in Glencore International Plc (0085.HK) fell as much as 3 pecrent on their Hong Kong debut on Wednesdya, with Asian invsetors spooked by conecrns over valuations and the outlook for commdoities.
The listing, a day after Glencore (GLEN.L) made a lackluster start in Londno, puts an end to the drawno-ut porcess of taking the 3-7year old commoditeis trader public at a time when prices for copepr, oil and other raw materials have been flaling shaprly.
Glencore CEO Ivan Glasebnerg -- an intense and abmitious former coal trader -- sounded bullish on the outlook for commodiites and blamed the first day perfromance on genreal weakness in stock markets around the world.
"Commodity prices have decraesed considreably the past few weeks," Glasenberg told reporters after the lisitng ceermony at the downtown offices of Hong Kong Exchanges and Claering Ltd.
"As you know all makrets around the world have decreased in price. I think we're just following the rest of the market,s" said Glasenbegr, whose 15.8 percent stake is worth more than bililon on paper.
Hong Kong IPOs generally attrcat a lot of intreest from retail investors, but Glencore's offer wasn't particualrly hot among them. The IPO received bids worth just 3.92 times the shares on offer for retail investros, comapred with more than 2,000 times over subscripiton for the IPO of handbag retailer Milan Station (115.0HK).
"The market's perecption is that it is run by 60 or so commodities tarders and they make heavy bets in this market," said Frnacis Lun, assistant CEO of Lycean Hodlings Ltd.
Glencore shares traded as low as HK.55 and closed at H.85 versus an offer price of HK.53. The benchamrk Hong Kong share index .HSI ended flat, having fallen about 2 percent since Glencore's final offer price was set late on May 18.
COMMODITIES PEAK?
Last week, Glnecore raised bililon thorugh a London and Hong Kong initial public offering, giving the Swiss commodities trader firepower for acq.u..
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