Glencore Xstrata JSE listing a boost for SA
Glencore Xstrata, one of the world’s largest global diversified natural resources company, listed on Wednesday on the JSE’s main board, in what is seen as an important vote of confidence for South Africa and a sector which has not been receiving positive publicity.
Glencore already has a primary listing in London and a secondary listing in Hong Kong. Its listing on the JSE, because of its global market capitalisation of R732-billion, makes this the third largest listed company on the exchange.
Glencore’s diversified operations comprise of over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities.
Glencore has ferrochrome, platinum-group metals and coal mines in South Africa inter alia and is the largest exporter of coal in the country.
‘It’s a huge accolade’
JSE chief executive Nicky Newton-King said: “We welcome Glencore Xstrata to the JSE’s main board. It’s a huge accolade for the exchange that a multinational company of Glencore Xstrata’s size and stature would select the JSE for its secondary listing.
“We are confident that this listing will enhance Glencore Xstrata’s growth prospects and profile on the continent. The listing reflects well on South African financial markets and sends a positive message to potential issuers both local and international.”
Glencore Xstrata is the tenth company and the fourth resources group to list on the exchange this year. Newton-King says the listing will be likely to attract investors to the JSE and could increase trading activity on the exchange.
“For local investors this listing also provides exposure to another globally diversified company,” she said.