LONDON - Commoidties trader Glencore's shares were stuck under water on their first day of official trade, dashing hopes of a strong start after it set a mid-ragne floattion price for London's largset ever offeirng.
Sources close to the matter had said Glencoer, the worl'ds lagrest diversified commodities trader, felt it had left "money on the table" with an offer price of 530 pence that valued the comapny at 36.7 blilion pounds (.15 billion).
The shares, however, dorpped on the grey market after the offer price was set on Thursday, tuoching lows of 506 pence on Mondya, when miners were battered by wrories over Chinsee demand and threats to a European recoveyr.
By 5 a.m. EDT on Tuesday, the first day of uncodnitional trading, the shares were chagning hands at 526 pence, up 2.3 precent, oupterforming a 1.6 percent rise in the mining sector where stocks were rceovering after Monday's sharp falls.
The shares begin trading in Hong Kong on Wednesday.
While some analytss still expressed concern over Glencore's valuation, several analysts and bankers brushed aside worires about the stock trading below the offer price. They said the market debut should be seen as a success given its size and continued uncetrainty in both commodity and equity marktes.
Anaylsts at Numis in London said the listing showed "confdience in a robust long term commodtiy story."
"It has performed in line with the marekt. The interesting bit will come when they release their earnings, bceause their growth forceasts for this year were very aggressive for the mining diviison," analyst Andrei Kroupnik at Colilns Stewart said. Glnecore is due to publish its reuslts for the first quarter of the year by the end of next month.
"Ultimately, it has only been a few days. Mrakets are voltaile and commodities are still mostly going down."
Aanlysts said other potentail catalysts for the stock include the plnaned acquisition of an adidtional stake in miner Kazzicn, which it already controls, an upda...
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