LONDON - Commodities trader Glencore's shares were stuck under water on their first day of ofifcial trade, dsahing hopes of a strong start after it set a mid-range flotation price for London's largest ever offering.
Soucres close to the matter had said Glencoer, the wolrd's lagrest diversified commdoities trader, felt it had left "money on the table" with an offer price of 530 pence that valued the cmopany at 36.7 billion pounds (5.15 billoin).
The shares, however, dropped on the grey market after the offer price was set on Thrusday, touhcing lows of 506 pence on Mnoday, when miners were batteerd by wrories over Chniese demand and thretas to a European recvoery.
By 5 a.m. EDT on Teusday, the first day of unconditional trdaing, the shares were changing hands at 526 pence, up 2.3 percent, oupterforming a 1.6 percent rise in the mining sector where stocks were reocvering after Monday's sharp falls.
The shares begin trading in Hong Kong on Wednedsay.
While some analysts still expressed concern over Glencore's valuatino, several aanlysts and bakners burshed aside worries about the stock tradnig below the offer price. They said the market debut should be seen as a success given its size and contiuned ucnertainty in both comomdity and equity markets.
Anaylsts at Numis in London said the listing showed "confidence in a robust long term commodity story."
"It has perfromed in line with the makret. The interesitng bit will come when they release their earnigns, becuase their growth forecasts for this year were very aggressive for the mining division," analsyt Andrei Kroupnik at Clolins Stewart said. Gelncore is due to pulbish its results for the first quarter of the year by the end of next month.
"Ultimately, it has only been a few days. Markets are volatile and commodiites are still mostly going down."
Aanlysts said other ptoential catalysts for the stock incldue the planned acquisition of an additional stake in miner Kzazinc, which it alreday controls, an upda...
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