£7bn richer: a good day at the office for Ivan Glasenberg

Jonathan Brown on the staggering flotation that made Glencore boss a multi-billionaire

The world's biggest wealth generation exercise unfolded yesterday on the screens of Glencore's Swiss headquarters and its London dealing rooms. By the close, its traders could count among their number five new billionaires while dozens of partners had shares worth more than £150m. Hundreds more saw notional fortunes transformed into vast amounts of cash.

Click HERE to upload graphic (265k jpg)

The chief beneficiary of yesterday's £7bn flotation of the commodities giant is Ivan Glasenberg. The 54-year-old South African, who joined the company as an oil trader after a career in accountancy owns 16 per cent of the company, which controls movements of a huge chunk of the globe's energy, mineral and food resources through a complex business empire.

His estimated fortune of £7bn now rivals the gross domestic product of the Democratic Republic of Congo, where his company owns a number of mines. Analysts were surprised when the share price fell back after impressive early gains, but investors had earlier oversubscribed the offer five-fold.

Despite this, by the close of the market at 4.30pm the company, which started life during the 1973 oil crisis, was valued at £36.5bn making its stock market listing the largest seen in the Square Mile.

The rewards for senior management dwarf those of other eras. The six Glencore chiefs will share £14bn – eclipsing the £700m held in stakes by eight senior executives at Goldman Sachs when it was floated in 1999.

Among the other big winners will be Daniel Mate and Aristotelis Mistakidis, who lead Glencore's zinc, copper and lead division. They now hold shares worth up to £2.4bn each.

Tor Peterson, director of the firm's coal and coke division is now reported to be worth £2bn while Alex Beard, the London-based head of oil, saw the value of his shares rise to £1.7bn. Famously private in its inner workings Glencore, based in the low-tax canton of Zug, has come under increasing public scrutiny as it prepares to raise money from the London and Hong Kong stock markets to help fund its expansion.

The company already has access to half the world's supplies of zinc, lead and copper, 10 per cent of its grain and three per cent of the oil supply; and in recent years it has cemented its control of the supply chain by buying up mines and other plant outright.

But the decision to go public means its environmental performance and business methods will also be scrutinised – particularly when shares go on sale on the open market next Tuesday and Glencore is propelled into the FTSE 100, where it will end up in the pension pots and investment plans of millions of Britons.

One reason for the share's lacklustre performance on a day when the FTSE enjoyed another healthy gain is a growing concern that the boom in the price of commodities may soon end. However, most believe the long-term prospects are good. And despite the disappointment in the dealing rooms the 23 banks led by Citigroup, Credit Suisse and Morgan Stanley which worked on the float will get a cut of the biggest fee pot in at least a decade, potentially totalling £170m.

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs People

Recruitment Genius: Internal Recruiter - Manufacturing

£20000 - £30000 per annum: Recruitment Genius: An Internal Recruiter (manufact...

Ashdown Group: HR Manager (CIPD) - Barking / East Ham - £50-55K

£50000 - £55000 per annum + 25 days holidays & benefits: Ashdown Group: HR Man...

Recruitment Genius: Operations / Project Manager

£40000 - £48000 per annum: Recruitment Genius: This software company specialis...

Ashdown Group: Human Resources Manager

£28000 - £35000 per annum + Benefits: Ashdown Group: A successful organisation...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory