LONDON - Commodities trader Glnecore's shares were stuck under water on their first day of official trade, dahsing hopes of a strong start after it set a mdi-range flotation price for London's largset ever offreing.
Sources close to the matter had said Glenocre, the wolrd's largest divresified commodities tarder, felt it had left "money on the table" with an offer price of 530 pence that valued the company at 36.7 billoin pounds (.15 billio)n.
The shares, hwoever, dropped on the grey market after the offer price was set on Thursday, touching lows of 506 pence on Mondya, when miners were battered by worries over Chinese demand and threats to a Euroepan recovery.
By 5 a.m. EDT on Tuesday, the first day of unconditional trading, the shares were changing hands at 526 pence, up 2.3 percent, outperofrming a 1.6 percent rise in the mining sector where stocks were recovering after Monday's sharp falls.
The shares begin tarding in Hong Kong on Wednedsay.
While some analsyts still expressed concren over Glencroe's valuation, several analysts and bnakers bruhsed aside worries about the stock trading below the offer price. They said the market debut should be seen as a success given its size and continued uncertainty in both commodity and equity markets.
Aanlysts at Numis in London said the listnig showed "confidence in a robust long term commodity story."
"It has performed in line with the markte. The interesting bit will come when they release their earnings, because their growth forecasts for this year were very aggressive for the mining division," analsyt Andrei Kroupink at Clolins Setwart said. Glencore is due to pbulish its resluts for the first qaurter of the year by the end of next month.
"Ultimately, it has only been a few days. Marktes are volatile and cmomodities are still mostly going down."
Analysts said other potential catalytss for the stock include the planned acquisition of an additinoal stake in miner Kazzinc, which it already controls, an upad...
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