Mining giant Glencore has officially started on the Australian Securities Exchange.
Glencore joined the ASX at 11am on Wednesday with the ticker code GLC.
It will dual list through CHESS Deposit Interest (CDIs) giving the holder a one-for-one holding with ordinary shares on the London Stock Exchange.
While Glencore was already listed on the London and Johannesburg exchanges, the business wanted access to the Australian market – a miner friendly stock exchange with home grown giants such as BHP, Rio Tinto and Fortescue Metals.
The company wants to bridge the gap between itself and BHP as it looks to become the largest miner in the world.
The third listing will not involve any new capital raising or creating of new shares, but the miner hopes it will attract around $5bn worth of new capital over the coming year.
Glencore chief executive Gary Nagle told News24 many investors had previously not bought the stock due to it being listed in London.
“Many are shareholders already (and) many are restricted by the mandate of the funds about whether they can invest or how much they can invest,” Mr Nagle said.
“A lot this has been driven by that reverse inquiry – either asking us to list on the ASX where their mandate allows (them) to invest or, (for) those who are already invested and want to invest more, asking us to list here so then they can put more money into our securities.”
The miner said it hoped its ASX listing would attract large institutional investors and help close a valuation discount to rivals such as BHP Group by strengthening its local connections.
Most Australians will know Glencore as a coal miner as it manages 13 open-cut and underground thermal and metallurgical coal mines in the Hunter Valley and the Bowen Basin.
It has 16,820 employees and contractors in Australia out of its nearly 150,000 workforce.
But it is also involved in transition metals such as copper and nickel.
British stockbroker Hargreaves Lansdown head of equity research Derren Nathan said it was these transition metals that over time would become more important to the business.
“Overall, the outlook is encouraging, with improving production, growing copper exposure, a measured plan for coal and a larger marketing platform supporting a stronger returns profile,” he said.
“But commodity prices remain a key driver, and favourable conditions have pushed the valuation close to ten-year highs.”