Key facts
- Glencore plans a secondary listing on the Australian Securities Exchange (ASX) by October 2026.
- The company believes its shares are undervalued and lack liquidity on the London Stock Exchange.
- CEO Gary Nagle stated the listing aims to broaden the investor base and enhance trading liquidity.
- Glencore's shares climbed 3.5% to 570.3p after the announcement.
- The company has significant operations in Australia, particularly in the coal mining industry.
Glencore, a major global mining and trading company, has announced its intention to pursue a secondary listing on the Australian Securities Exchange (ASX) by October 2026. This move is seen as a significant development for London's stock market, which has been struggling to retain listings, particularly within the mining sector. Glencore, currently a large constituent of the FTSE 100 with a market capitalization of £64.4 billion, has long expressed dissatisfaction with its share valuation and liquidity in London.
CEO Gary Nagle stated that the Australian listing aims to broaden Glencore's investor base and enhance trading liquidity, leveraging Australia's substantial capital pools and sophisticated investor base with expertise in the global resources sector. The company highlighted Australia as one of its most important operating jurisdictions, with significant exposure to the coal mining industry.
Following the announcement, Glencore's shares climbed 3.5% to trade at 570.3p. The stock has seen a year-to-date increase of 39.4%, driven by market volatility and the company's strong trading division performance, partly attributed to the Middle East conflict.
The ASX welcomed Glencore's intention, recognizing its position as a natural home for world-class resources companies. This follows a trend of miners looking to Australia for liquidity, including BHP's decision to switch its primary listing there in 2022. Rio Tinto also faced a shareholder proposal last year to review its London listing, though it was ultimately rejected. Investment director Russ Mould of AJ Bell expressed concerns that Glencore's move could further erode the UK market's representation in the mining sector. In contrast, Anglo American, while merging with Teck for $53 billion, has opted to maintain its primary listing in the UK.