Mining giant Glencore opens trading on Australian stock exchange this week
Mining company Glencore begins trading on the ASX via depositary interests. It targets Australia's vast pension fund sector without raising new capital.
Mining and trading giant Glencore starts trading on the Australian Securities Exchange on Wednesday. It uses CHESS Depositary Interests.
Each one represents one London-listed share. The listing does not sell new shares or raise funds.
But Glencore aims to attract investment from Australia's superannuation industry. Australian investors gain exposure to copper.
Copper has risen sharply due to demand from data centres, power grids and renewable energy projects. Australian depositary interests can qualify for local share indexes.
Glencore is targeting inclusion in the S&P/ASX 100. This could eventually draw passive investment if the stock reaches about A$5.5 billion in value.
However, some major super funds have reduced coal exposure in recent years. Glencore produces both thermal coal for power and metallurgical coal for steelmaking.
This may limit buyer interest.
- A$5.5 billion
- Market cap threshold for index inclusion
- About 50 percent
- Glencore's target copper earnings mix
- Some have reduced it in recent years
- Coal exposure stance among super funds
Why it mattersGlencore's ability to attract Australian pension fund money will signal investor appetite for diversified mining stocks. It will show whether climate concerns will limit coal company access to super fund capital.
AustraliaAustralian super funds will need to decide whether coal exposure fits their climate policies; indexing the stock could force passive funds to hold Glencore shares if it joins the ASX 100.
✓ Claims checked against the source. checked 2 h ago
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