Key points
- Glencore CDIs closed at A$11.23, down 1.8% from their A$11.44 open.
- Nagle expects strong Australian demand for copper’s electrification role.
- Analysts say the listing could ease investors toward a future Rio Tinto deal.
Glencore’s shares traded heavily in their Wednesday debut on the Australian Securities Exchange, where the miner and trader hopes to secure a better valuation from investors seeking greater copper exposure.
The CHESS Depositary Interests closed at A$11.23 ($7.86), down 1.8% from their A$11.44 opening, with more than 4 million shares changing hands.
Rivals BHP Group and Rio Tinto also fell. On a pence-equivalent basis, the CDIs finished at 592.64 pence, a small premium to Glencore’s last London close of 582.90. The company also trades in Johannesburg.
Betting on copper
CEO Gary Nagle expects strong demand from Australian investors backing copper’s role in electrification, from grid expansion to transport and AI data centers.
“Glencore has been investing in Australia for decades and we know the Australian investment community has a sophisticated understanding of global resources and commodity markets,” he said.
Nagle has said he believes the $88 billion company can join the S&P/ASX 200 within 12 months, though analysts see momentum that could do it in about half that time.
Paul Schroder, a partner at law firm Mallesons, said a company of Glencore’s scale joining the ASX is rare, especially in a period of subdued listings.
Rio Tinto and deal talk
Analysts speculated that the listing could help win over investors who saw no value in Glencore’s approach to Rio Tinto last year.
Rio walked away from talks on a $240 billion tie-up in February. Nagle said a deeper Australian presence may yield opportunities, though there is no set buyout list.
JPMorgan analysts said after meeting Nagle that management still sees merit in a Rio combination. Glencore shares have outperformed Rio’s by 10% since talks collapsed, and “who knows what happens in the future,” the analysts quoted management as saying.
