Glencore Sinks Below Offering Price (GLEN.L)

From DealBook:

Not all initial public offerings are getting the same interest as LinkedIn.

Shares of Glencore, the large commodities trader and miner that officially started trading in London on Tuesday, sank to 525 pence, or $8.46. That’s down from its offering price of 530 pence, or $8.60.
Last week, Glencore sold 1.14 billion shares, raising $10 billion in the largest I.P.O. of the year. The offering last week valued the company at nearly $60 billion.

But unlike LinkedIn and other big technology debuts in the U.S., Glencore got a lukewarm reception when it started trading on a conditional basis, amid concern that commodity prices might have peaked. Shares of the commodities giant increased to 553 pence on its first day of trading before settling back down to its offering price 530 pence.

Since then, investors interest has been tepid. On May 23, Glencore stock hit a low of 514 pence. Shares of the company, which were formally added to the London Stock Exchange on Tuesday, are currently trading at 530 pence. Glencore is set to officially start trading in Hong Kong on May 25....MORE