Glencore Xstrata's vote of confidence in Africa
14 November 2013
Glencore Xstrata, the world's fourth-largest diversified miner, launched a secondary listing on the Johannesburg Stock Exchange on Wednesday. The company listed on the JSE's main board with a global market capitalisation of R732-billion, making it the third-largest company on the exchange.
Glencore's diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities in various countries. The company has ferrochrome, platinum and coal mines in South Africa, and is the country's largest exporter of coal.
"Our listing on the JSE is a significant step for Glencore," Glencore CEO Ivan Glasenberg said in a statement. "It not only deepens our relationship with South Africa, it highlights our confidence in Africa as a place to invest."
JSE chief executive Nicky Newton-King said it was 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," Newton-King said, adding: "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 South African exchange this year.
Newton-King said the listing was likely to attract investors to the JSE and increase trading activity on the exchange. "For local investors this listing also provides exposure to another globally diversified company."
Glencore Xstrata has a primary listing on the London Stock Exchange and a secondary quote on the Hong Kong Stock Exchange.