Melbourne – Glencore, the world’s largest exporter of thermal coal, announced plans for a secondary listing on the Australian Securities Exchange (ASX) this October. The move is designed to attract the growing pool of institutional capital that is increasingly focused on copper, a metal seen as essential for electrification and artificial‑intelligence applications.
Listing goals and market expectations
Glencore’s chief executive, Gary Nagle, said the $88 billion company expects its ASX‑traded shares to reach the market‑value threshold of A$1.5 billion needed for inclusion in the benchmark S&P/ASX 200 index within 12 months. Reaching the larger S&P/ASX 100 would require a market value of at least A$5.5 billion, a target analysts believe could be met as early as March or April of next year if liquidity and capitalization grow as projected.
Brokerage firms including JPMorgan, Barrenjoey and UBS briefed investors on the proposed listing, describing the sessions as well attended. While JPMorgan and UBS declined comment, Barrenjoey did not return a request for comment.
Copper versus coal considerations
About 30 % of Glencore’s profit currently comes from copper, and analysts estimate that copper could account for roughly half of the miner’s earnings by 2030 if its development plans stay on schedule. This potential growth is helping to offset concerns that roughly 15 % of the company’s industrial earnings still derive from thermal coal.
Andy Forster, senior investment officer at Argo Investments, noted that many investors are now more willing to consider additional opportunities, suggesting a softening of the emphasis on environmental, social and governance (ESG) screens among some funds.
Investor sentiment on ESG and fossil‑fuel screening
Contrary to the view that ESG‑focused funds have collapsed, the Responsible Investment Association Australasia (RIAA) reported that Australian funds that exclude coal investments grew 14 % to A$37.9 billion last year. RIAA co‑CEO Estelle Parker said younger investors are increasingly asking where their money is placed, with fossil‑fuel exclusion becoming a popular screen at the consumer level.
Australia’s Productivity Commission estimated that about A$3.5 trillion of assets will transfer from baby‑boomers to younger generations by 2050, a shift that could further boost demand for funds that screen out fossil fuels.
Liquidity and precedent on the ASX
Australian investors have grown accustomed to secondary listings through CHESS Depositary Interests (CDIs). The ASX now lists 37 metals and mining companies via CDIs, up from 22 in early 2020, and trading activity has accelerated sharply, suggesting Glencore could find the liquidity it needs.
Liquidity in the market is driven by a handful of global miners, led by Newmont, Alcoa and Capstone Copper, with Newmont alone generating around A$9.0 billion in turnover.
Outlook
Analysts see momentum behind Glencore’s stock that could propel it into the top‑100 index sooner than expected, giving the company greater visibility among Australian investors who use the ASX 100 as a benchmark. The listing also opens the door for potential large‑scale mergers and acquisitions as Glencore seeks to expand its copper portfolio.
While the company’s thermal‑coal exposure remains a point of discussion, the prevailing view among investors is that copper’s growth prospects may outweigh those concerns, especially as demand for the metal continues to rise in a rapidly digitizing economy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
