Prince Alwaleed says $400m invested in Glencore IPO

Saudi billionaire's Kingdom Holding buys 3.6% of shares in world's largest commodities trader
Prince Alwaleed says $400m invested in Glencore IPO
Saudi Prince Alwaleed bin Talal. (AFP/Getty Images)
By Andy Sambidge
Mon 23 May 2011 06:58 PM

Saudi billionaire Prince Alwaleed and his investment firm Kingdom Holding invested $400 million in Glencore International's initial public offering, the firm said on Monday.

"(The investment) represents 3.6 percent of the value of shares offered, Kingdom Holding's share is worth $60 million," Kingdom said in a statement.

Prince Alwaleed said: “Investing in this leading company is an extension of Kingdom Holding’s continuous pursuit of solid and distinct investments.”

Ahmed Halawani, executive director of Private Equity and International Investments at Kingdom, added: “With the global economic recovery gaining traction, we have a positive outlook towards commodities. We strongly believe that we are well positioned with a leader in the commodities business and a management with a proven track record. Glencore will prove to be a smart addition to our portfolio of companies.”

Swiss-based commodities trader Glencore made a lukewarm market debut on Thursday that handed it currency for future acquisitions, with its shares struggling to break much above its widely expected launch price of 530 pence.

Despite this appetite for the stock, with many investors left out of the offering after Glencore was flooded with orders for its shares, by the market close the shares had pared those gains to end back unchanged at 530 pence.

On Monday, shares in Glencore dropped more than three percent on the grey market to fresh lows of 506 pence, in line with a battered sector but well below its debut price.

Glencore, the world's largest diversified commodities trader, had said there was strong demand for its stock and had enough buyers to cover its offering of up to $11 billion within hours of starting the sale process earlier this month.

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