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Milton Financials: Commodity trader Glencore is considering IPO in early 2011.
Privately held commodity trading giant Glencore may list early next year with an IPO that could raise as much as $16 billion.
Glencore, which posted a strong increase in nine-month profit recently, is looking at an IPO which would probably launch shortly after full-year results in March or April next year, Milton Financials sources report.
According to sources close to the matter a decision on the size of the offering is still pending but a figure of 10 billion pounds has been mentioned, which would make it one of the largest IPO's ever for London.
Milton Financials was told that the group may decide on a dual listing in London and Hong Kong and that Morgan Stanley, Credit Suisse and Citigroup are most likely to be involved in handling the listing.
Glencore, at this stage has declined to comment, and an analyst was reported to have said that such an IPO would likely not take place until the group completed a spin-off of its gold assets.
Earlier this year the Swiss-based firm announced plans for spinning off or listing its Kazzinc gold assets, which are expected to worth over $5 billion, in 2011.
The commodity giant, whose debt burden concerned investors during the recent economic crisis, told Milton Financials that its liquidity had increased to $4.6 billion in the third quarter from $3.2 during the second quarter, bettering the targeted $3 billion.
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