Glencore, one of the world’s largest mining companies and a major constituent of the FTSE 100, is planning to pursue a secondary stock listing on the Australian Securities Exchange (ASX) as early as October. The move reflects a strategic effort to broaden the company’s investor base and enhance trading liquidity, particularly by tapping into Australia’s substantial pool of long-term investment capital and its expertise in the mining sector.
The Anglo-Swiss mining group, valued at approximately £64.4 billion, currently holds its primary listing in London and secondary listings in Johannesburg. Chief Executive Gary Nagle highlighted the benefits of the Australian market, describing it as a “deep pool of capital with deep knowledge of the mining industry.” Glencore has faced longstanding criticism over its London share valuation, which some investors and analysts have viewed as undervalued relative to the company’s size and profitability.
Glencore’s plans for the secondary listing come in the wake of increased scrutiny and pressure from influential investment groups. Tribeca Investment Partners, an Australian hedge fund, has publicly urged the company to shift its primary listing to Australia to capture higher valuations, with one portfolio manager calling the London market “a joke exchange for mining companies” due to its comparatively low liquidity and valuation multiples. While Glencore has not confirmed any intention to move its primary listing away from London, industry observers note that the secondary listing could represent a preliminary step in that direction.
The company’s decision follows a strong financial performance, with half-year adjusted earnings rising 86 percent to $10.1 billion, marking the second-highest level in its history. Its commodities trading division significantly contributed to this growth, posting more than double profits to $3.3 billion amid heightened energy market volatility following the ongoing conflict in the Middle East. This robust outlook has helped boost Glencore’s shares, which climbed 4.1 percent on the London market following the announcement.
In addition to investor relations, Glencore is also addressing operational concerns. The company has ceased doing business with Singapore-based iron ore trader Radiant World, after allegations surfaced concerning the use of fraudulent documents, claims which Radiant has denied. Glencore has made provisions regarding its existing contracts with Radiant and is handling the matter to ensure legal compliance.
The ASX welcomed Glencore’s planned listing, with James Posnett, the exchange’s general manager for listings, emphasizing the benefit to both parties and the opportunity for Glencore to access Australia’s A$4.4 trillion (approximately US$3.1 trillion) superannuation funds. Australia is an important operating jurisdiction for Glencore, especially given its significant coal mining exposure in the region.
Glencore’s entry into the Australian market as a listed company follows precedent set by other major mining firms such as BHP, which shifted its primary listing to Sydney in 2022, and maintains a secondary listing in London. Meanwhile, Rio Tinto, another resources giant, continues to hold its primary listing in London despite past calls from activists to reconsider its listing structure.
The development underscores ongoing shifts in global capital markets for mining companies, as firms increasingly seek listings closer to their core operations and investor bases. Glencore’s secondary listing on the ASX is poised to be one of the largest in the exchange’s history, potentially ranking the company among the top-listed entities in Australia by market capitalization.