May 24 - Commodities trader Glencore shares stuck under water on their first day of official trade - dashing hopes of a strong start. Penny Tweedie reports.
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Despite high hopes and a big fanfare in the run up to the London Stock Exchange's biggest ever Initial Public Offering, Glencore shares traded slightly below their offer price in the first day of unconditional trading.
The commodities trader and mining giant dashed hopes of a strong start when it set a mid range flotation price.
Sources said Glencore had left so called money on the table with an offer price of 530 pence - that valued the company at 36.7 billion pounds.
But the shares dropped in conditional trading and on the first day of unconditional trading were changing hands at 526 pence .
The shares dropped to lows of 506 pence on Monday when miners were battered by worries over Chinese demand and threats to European recovery.
The IPO brought an end to almost four decades of life as a secretive private company.
The Swiss-based commodities giant will now join the FTSE blue chip index.
Its shares begin trading in Hong Kong on Wednesday.
Penny Tweedie, Reuters.
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