Shares of Singapore-listed commodity trading firm Noble Group (NOBG.SI) rose as much as 2.3% on Monday, on hopes that its valuations could get a boost from Glencore’s planned initial public offering, traders said.
At 11:25 a.m., shares of Noble were 1.9% higher at $2.19 with over 14.3 million shares changing hands.
At 11:25 a.m., shares of Noble were 1.9% higher at $2.19 with over 14.3 million shares changing hands.
Commodity trader Glencore is targeting an offer size of between US$9 billion ($11.2 billion) to US$11 billion. The London part of the offer should raise up to US$8.8 billion, while the Hong Kong leg of the deal could raise up to US$2.2 billion.
“From the rough estimates we have so far, it seems like Glencore’s valuations could be higher than Noble’s. Since both are peers, this could boost Noble’s valuations,” said a local analyst.
Glencore’s listing could also boost more investor interest in physical commodity trading companies such as Noble, the analyst said.
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