Glencore anyone?

MikeR71

Glencore flotation values company at about $61bn

Commodities trading giant Glencore has priced its planned flotation at between 480p and 580p per share, giving it a mid-point valuation of $61bn (£36.5bn).

http://www.bbc.co.uk/news/business-13277267

So with this valuation and floatation, what do people think about buying some of the shares? I have a bout £10000 which is currently sitting in an ISA gathering dust. Should I risk it on this?

Thanks

Theyarv1

I doubt PIs will be given a chance to buy in the IPO, you will have to wait til the shares are on the secondary market.

rfowler

When do you think the shares will be avaliable for general public to buy?

Biggles

I think the first day of trading is scheduled to be in the second half of May.

MikeR71

The question is whether it is a sensible investment or not. How likely is it that the price will rise to make any difference after charges and tax etc. I guess one never knows with shares but can make educated guesses.

Biggles

Private investors will miss out on any price rise at the beginning of day one, you just have to consider it on the fundamentals, the same as any other share.

sabretoothtigger

Sounds like a cough mixture. Easiest way to buy these shares is to buy an index tracker I think they will own this share from the start in bulk


What will it yield. The way things are right now, the ipo price will likely go down before any larger gain, lots of moneyflow needed to move a company of this size upwards

Biggles

If by 'yield' you mean dividend, it's expected to yield around 4%.

Nanpy

Big flotations like this are priced to maximize return to the existing company owners not to investors. I wouldn't be surprised to see their initial share price drop 20-25% over a year. This isn't like a public utility getting flogged off cheap. There is no Sid.

sabretoothtigger

Biggles wrote: »

If by 'yield' you mean dividend, it's expected to yield around 4%.

That is good, alot of this company worth is in its employees right. So if we make the boss 10bn richer and the senior men each a billion each.

Then what is left to motivate them because personally I'd play along for a year while I sell up 60% of the shares then skip away to spend it all, spending a billion is not easy to do.

Thats 3 bugatti veyrons every day for a year and they dont even make that many so thats a fail right away


Some people say the way to buy Glencore is to buy Xstrata which will likely be taken over completely once the main company becomes so cash rich it can do so with ease.
Plans to buy other firms are already made and XTA is already owned in part

Elsewhere the best value in sector is likely with BLT who mine everything including their own oil which miners need for power

dtsazza

Biggles wrote: »

Private investors will miss out on any price rise at the beginning of day one, you just have to consider it on the fundamentals, the same as any other share.

Yep. Have a read through the 1600 page prospectus :eek: in bed, and make what must amount to an incredibly well-informed decision.