Commodities Trader Glencore Preparing $11 Billion IPO Filing: Source

Global commodities trader Glencore International is preparing plans to raise as much as $11 billion through an initial public offering, a source familiar with the matter told Bloomberg.

It's expected that Glencore will announce a price range for the IPO on May 4, when executives are scheduled to start meeting potential investors, the person said, declining to be identified as the process is confidential.

The company trades in various commodities (metals and minerals, agricultural products, and energy) and remains a diversified natural resources conglomerate with interests in companies involved in mining, smelting, and refining. In the energy sector, the company markets such products as coal, crude oil, jet fuel, and gasoline.

According to the Bloomberg report, "Glencore's IPO will be the world's biggest this year, as stock markets recover from Japan's nuclear disaster and unrest in the Middle East. A real estate investment trust controlled by Hong Kong billionaire Li Ka-shing received orders for all shares offered in a $1.7 billion IPO on the first day of the sale, people with knowledge of the matter said yesterday."

The total value of Glencore's 10 largest holdings, which includes a 34% stake in Xstrata (LON: XTA), moved higher to $32.6 billion in mid-day London trade. This is the highest level since April of last year.

Founded in 1974 and owned by its employees, Glencore has offices in more than 40 countries worldwide.