Glencore began trading on the Australian Securities Exchange on Wednesday, adding a secondary listing in Sydney to its primary listing in London.
The company’s CHESS Depositary Interests trade under the ticker GLC, and each CDI gives holders an interest in one Glencore ordinary share. Glencore qualified for ASX listing as a Foreign Exempt Listing, and existing shareholders in the UK and South Africa can convert their shares into CDIs. The CDIs traded near A$11.24 late Wednesday morning in Sydney, down about 1.8%.
Glencore announced the plan August 5 with its half-year results, saying it wanted to widen its shareholder base and make its shares easier to trade. The company points to A$4.4 trillion in Australian pension assets and projects roughly A$12.4 trillion by 2045.
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Glencore expects to qualify for the S&P/ASX 200 within 12 months, which needs a local market value of about A$1.5 billion. The S&P/ASX 100 requires roughly A$5.5 billion.
The listing follows the collapse of merger talks with Rio Tinto, which walked away in February after saying the two sides could not reach a deal that gave its shareholders enough value. RBC Capital Markets sees the Sydney listing as more than a liquidity exercise and a possible step toward reopening a deal. The bank lists management control, the treatment of coal and the valuation gap as issues to resolve.
Glencore is a major thermal coal exporter, and its coal business could limit demand from pension funds. Many Australian super funds have adopted mandates that restrict investment in coal companies. About 25% of Glencore’s industrial revenue came from coal last year. Chief executive Gary Nagle said on a media call Friday that investor concern about fossil fuel holdings has eased since two or three years ago.
The move also adds to concern over London’s place as a mining listing venue. AJ Bell investment director Russ Mould said the UK market once “enjoyed healthy representation” in mining. BHP moved its primary listing to Australia in 2022.
