October 31, 2017 / 5:06 AM / a year ago

Glencore plans to withdraw shares from HK, citing lack of trading

FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, July 18, 2017. REUTERS/Arnd Wiegmann/File Photo

HONG KONG (Reuters) - Commodities trader and miner Glencore said on Tuesday it plans to withdraw its listing from Hong Kong, a blow to the Asian financial hub that has had a hard time luring international companies to go public in the city.

Glencore, which listed in London and Hong Kong in 2011 in a $10 billion deal, decided to cease trading in Asia because of the lack of appetite for its shares in the region. Since the May 2011 listing, only 0.3 percent of its share register were for Hong Kong-listed shares, the company said in a filing to the Stock Exchange of Hong Kong.

Glencore said its board thought the decision was in the best interest of the company, shareholders and holders of other Glencore securities, without giving further explanation.

Withdrawal is expected to become effective on Jan. 31, 2018, the filing said. It won’t affect trading of Glencore’s stock in London and Johannesburg.

Glencore’s listing followed a record year for initial public offerings in the city in 2010 and into 2011, including international names such as skin care products retailer L’Occitane International, Italian fashion house Prada SpA and luggage maker Samsonite International SA.

Since then, the number of international listings have declined.

Reporting by Elzio Barreto; Editing by Christian Schmollinger

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