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The London Stock Exchange (LSE) could suffer yet another blow – and its biggest yet – after mining giant Glencore revealed it was considering the option of switching its main listing overseas.
When Glencore was first listed in London 14 years ago, it was the LSE’s largest-ever float and now would be the largest to depart it, should a move occur.
With a market capitalisation of more than £40bn, it is the 16th-largest of all companies on the LSE, comparable to Barclays or National Grid in size.
The company is primarily a miner of coal and copper ore and is one of the world’s biggest miners. On the LSE, only Rio Tinto is bigger. Glencore made the comments after posted a $1.6bn loss (£1.3bn) for 2024 – following a $4.3bn (£3.4bn) net income in 2023 – due to impairments.
Perceived issues with valuation for companies listed in London has seen the likes of gambling giant Flutter and building materials group CRH switch main listings to New York in the past two years, while those seeking to float for the first time have been opting for other exchanges over London with regularity due to valuations, regulations or even visibility cited as reasons.
Chip-maker ARM, payments platform Klarna and Aspen Insurance have all opted for New York over London of late, while FTSE 100 construction rental firm Ashtead also said in December that it planned to shift its primary listing to New York.
More recently, consumer group Unilever revealed plans to give its ice cream business, which contains Ben & Jerry’s and Magnum, a primary stock market listing in Amsterdam when it is spun off later in 2025, with London only an additional listing along with New York.
Gary Nagle, chief executive of Switzerland-based Glencore, told reporters after unveiling annual results that the group is looking at whether other exchanges are “better suited to trade our securities”.
“We want to ensure that our securities are traded on the right exchange, where we can get the right valuation. There have been questions raised previously around whether London is the right exchange. We’re looking at all relevant exchanges that would make sense for Glencore.
“London is one where we are and where we’re happy but if there’s a better one, and those include the likes of the New York Stock Exchange, we have to consider that,” Mr Nagle said.
Shares in Glencore are down 16 per cent over the last year and down around a third since closing above 500 pence in May of last year, but remain up more than 42 per cent over five years. They now trade at 331 pence at the time of reporting, down just over six per cent in Wednesday trading following their morning financial report.
Weaker coal prices and the closure of a nickel operation in New Caledonia were cited by Deutsche Bank and Reuters as potential reasons for investors feeling Glencore, rather than the daily drop being directly related to a possible listing switch.
Glencore also has a listing on the Johannesburg exchange.
Additional reporting via PA
