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Glencore to close IPO books early

Glencore to close IPO books early
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Commodity trader Glencore is having no trouble selling 7.7 billion euros worth of shares with its initial public offering despite the recent volatility in commodity prices.

Sources said there has been so much demand from investors that it could have sold those shares more than twice over.

Glencore, which is the world’s largest diversified commodities trader, said it will close the books on the IPO a day ahead of schedule on 17 May.

Chief Executive Ivan Glasenberg told reporters in Hong Kong on Thursday that the IPO had generated strong demand, dismissing agitation in commodity markets as “froth”.

As well as the London offer, one in Hong Kong aims to capitalise on the deep pockets of investors in the region, who are well acquainted with surging demand for metals and other natural resources from fast-growing economies in China and India.

The listing is set to boost Glencore’s acquisition power but will also push the group into the public eye after 37 years and make its publicity shy executives paper multi-millionaires.