Glencore raises 1.6bn GBP in new share issue

16th Sep 2015 07:30

(ShareCast News) - Glencore has raised £1.6bn by placing new shares with institutions and senior management at a small discount in order to pay off some of its debts.The commodities conglomerate issued 1,307bn shares at a price of 125p, a discount to the closing price on Tuesday of 128.05p.The issue represented 10% of company's total shares in issue and will be admitted to the London Stock Exchange and its secondary listing exchanges on 21 September when the placing will become unconditional.The new shares will therefore be admitted after the ex-dividend date for the 2015 interim dividend of $0.06 per share, payable on 29 September.Chief executive Ivan Glasenberg subscribed to a massive £137m worth of shares to keep his stake in the company at 8.42%, with fellow directors Daniel Mate and Telis Mistakidis also subscribing to substantial amouts keep their holdings at 3.22% and 3.22% respectively. Glencore announced its exact plans for the placing late on Tuesday afternoon and then confirmed the successful take-up on Wednesday morning.The 78% of the shares not taken up by management were sold to institutions with Citigroup and Morgan Stanley as joint bookrunners and Barclays given a secondary role.