Clifford Chance and Linklaters have snared the prize mandates on the long-awaited IPO of commodities trader Glencore.
The flotation of up to $12bn (£7.3bn) of stock on the London and Hong Kong exchanges would value the trading giant at around $60bn and be the biggest IPO ever to hit the London market.
Linklaters corporate partner Charlie Jacobs is understood to be advising Glencore on the flotation. The magic circle firm’s team is completed by Hong Kong corporate partner Rob Cleaver, capital markets partner Patrick Sheil advising on US matters, London corporate partner Owen Clay and corporate partner-elect David Avery-Gee, who will join the partnership next month.
Clifford Chance is advising the syndicate of banks acting as lead arrangers – Morgan Stanley, Citigroup and Credit Suisse. Capital markets partner Adrian Cartwright is leading the Clifford Chance team alongside City banking partner David Lewis, US securities partner John Connolly and Hong Kong corporate finance partner Amy Lo.
Jacobs acted for Glencore on last year’s $2.2bn bond issue – a deal that was widely viewed as a precursor to a flotation for the mining and resources investor.
It is expected that the listing will be used to fund a raft of new acquisitions for Glencore.
A source close to the deal said: “These things can grow quickly if you have the vision, power and credibility, and these guys have got all of that. It will give them a lot of firepower.”
The deal is unlikely to revive what continues to be a struggling IPO market, particularly in London.
One City corporate partner commented: “A lot of people have been saving their bucks for this one so it will continue to be difficult, especially this side of the summer.
“Investors do not like all the instability in the world at the moment.”
Last month Dubai-based Topaz Energy and Marine pulled a proposed $500m listing in London, citing Japan’s nuclear crisis along with valuation issues as reasons for shelving the project.