Glencore, the world's largest commodities trading group by revenue intends to sell between $9bn-11bn in shares in its IPO on the Hong Kong and London stock exchanges, the Swiss company announced on Thursday.
The group will use in the next three years around $5bn of the profits from the IPO for capital expenditure and around $2.2bn toward debt reduction and the increase in its stake in mining firm Kazzinc, it said.
Glencore, which owns a major share of the global trade in raw materials including corn, copper and coal, is planning to sell between 15 and 20 percent of its stock, which would value the company at around $60bn.
Ivan Glasenberg, Glencore's CEO said in a statement: “Over many decades, we have developed Glencore into an unrivalled global integrated commodity producer and marketer, active in almost every bulk commodity market.”
“An IPO is the next logical step in our development and strategy. It will provide us with the financial flexibility to capitalise upon long-term growth opportunities throughout our business and achieve further sustainable growth,” he added.