£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?
Independent Dating

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

iJobs Job Widget
iJobs People

Recruitment Genius: Office Manager

Negotiable: Recruitment Genius: Have you been doing a brilliant job in an admi...

Surrey County Council: Senior Project Officer (Fixed Term to Feb 2019)

£26,498 - £31,556: Surrey County Council: We are looking for an outgoing, conf...

Recruitment Genius: Interim Head of HR

£50000 - £60000 per annum: Recruitment Genius: Are you an innovative, senior H...

Recruitment Genius: Human Resources and Payroll Administrator

£20000 - £22000 per annum: Recruitment Genius: Our client, a very well respect...

Day In a Page

Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review