Updated
Updated · Financial Times · Aug 6
Glencore to Issue Sydney Receipts by October as It Chases Australian Investors
Updated
Updated · Financial Times · Aug 6

Glencore to Issue Sydney Receipts by October as It Chases Australian Investors

3 articles · Updated · Financial Times · Aug 6

Summary

  • Sydney depository receipts due by October will let Australian investors trade Glencore locally without the miner raising capital or taking on the governance burden of a full dual listing.
  • Glencore said investor inquiries in Australia drove the move, which could broaden its shareholder base and help lift a valuation that trails local peers.
  • S&P Capital IQ data cited by the FT show BHP trades at about 4 times tangible book value, versus less than 3 times for Glencore.
  • The plan fits a broader shift away from cumbersome dual listings: Newmont and Alcoa already use Sydney depository receipts, while Glencore has run a similar Johannesburg listing and dropped Hong Kong in 2018.

Insights

Why is a mining giant bypassing Australia's strict market rules to tap into its massive pension pool?
Are traditional stock listings dying as global corporations increasingly exploit depositary receipts to dodge governance requirements?