Glencore IPO topples Goldman in adviser rankings

LONDON (Reuters) - The bumper listing of commodities trader Glencore will seal the standing of its advisers as some of this year’s top share underwriters and see Goldman Sachs overtaken in Europe after it missed out.

The IPO of up to $12.1 billion, marking a potential record for London even as a portion is also raised in Hong Kong, will help senior advisers rise so far up rankings that some rivals will struggle to catch up for the rest of the year.

“There are lots of deals in the pipeline, but there are relatively small windows in which to get deals done. For those not on these big deals it is worrying,” said a senior equity capital markets banker not working on Glencore’s listing.

Despite not participating in the Glencore IPO, Goldman maintains a solid lead in the global equities deal rankings.

For JPMorgan the loss is more damaging and it will likely drop outside the top five equity and IPO rankings for Europe, the Middle East and Africa, two tables it topped this time last year.

The windows for equity deals are typically early May to the summer and then September to Christmas.

Glencore’s top advisers are Citigroup, Credit Suisse and Morgan Stanley.

Bank of America Merrill Lynch and BNP Paribas also share a joint bookrunner title and will gain credit in crucial league tables.

Lower-ranking advisers Barclays Capital, Societe Generale and UBS and boutique Liberum Capital will not get that league-table credit, according to Thomson Reuters criteria, but will share a fee pool that could run to $400 million.


The deal is being spearheaded by some big names.

Citi’s advisers on the deal include David Wormsley, the senior UK banker best known for his court battle with Guy Hands over the private equity firm’s controversial purchase of music group EMI.

Capital-markets specialists involved include Citi’s Michael Lavelle, Credit Suisse’s Thomas Gottstein and Morgan Stanley’s Emmanuel Gueroult. Other senior bankers include Mark Echlin, head of industrials at Credit Suisse, and Michel Antakly, a managing director at Morgan Stanley.

More unusual is the inclusion of Liberum, a London boutique that typically advises on smaller listings, which landed a role thanks to its senior mining analyst, Michael Rawlinson.

Formerly an investment banker at Cazenove, Rawlinson has worked on IPOs for BHP Billiton, Xstrata, Anglo American and others, and was one of the first to attempt a detailed valuation of Glencore. In January, Liberum put a $60 billion valuation on the secretive firm.


The offering leaves some of Europe’s top equity advisers out in the cold, notably Goldman, Deutsche Bank and JPMorgan. They were always unlikely to feature because of their ties to Swiss firm Xstrata and other miners.

Xstrata is partly owned by Glencore, and has resisted the idea of a merger before Glencore went public, making a role on the IPO tricky for Xstrata’s long-time advisers.

Bank of America is set to leapfrog Goldman as top dog for equity deals in Europe, the Middle East and Africa so far this year, but Goldman will remain in the top five, according to Thomson Reuters data.

Glencore’s deal highlights the “lumpy” nature of league table credits, and recent months have been particularly choppy in equities with several deals scrapped at the last moment, such as the IPO of UK technology firm Edwards, which JPMorgan had advised on.

additional reporting by Quentin Webb; editing by Sophie Walker