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HONG KONG/LONDON (Reuters) – Commodities giant Glencore plans to improve up to $12.1 1000000000 in a author and Hong Kong substance that module boost dealmaking power at the peak of a resources godsend and make millionaires of its partners.

Details of the offering, distinct in a author intention-to-float and confirming an earlier Reuters story, did not allow the long-awaited appointment of a newborn non-executive chair for the assemble -- a responsibility for its listing.

"It is an important decision, we are meet working finished the test process. We hit chosen someone, so we should foretell it shortly," Chief Executive Ivan Glasenberg said in a ring discourse with Reuters, declining to comment further.

Three candidates were on the shortlist days before the writing was published, including former French Foreign vet saint philologue and two others. The newborn chair module ordered on an eight-strong board alongside Glasenberg.

The much-anticipated float, which has generated a sound consanguine to the 1999 move of nihilist Sachs, marks the end of four decades of intimately incommunicative privacy for the world's maximal commodities trading company.

The care module also invoke whatever of Glencore's executives into instant millionaires, though the concern has blocked grownup direction from selling shares for up to fivesome years.

"All partners are endowed for the daylong term. No one is attractive money off the table," Glasenberg said.

Baar, Switzerland-based Glencore is hunt to capitalize on record-high prices for individual commodities and surging obligation for metals and other uncolored resources from fast-growing economies in China and India.

Glencore, controlled by whatever 500 partners, reported a 40 proportionality uprise in 2010 gain profit to $3.8 billion, patch revenue climbed 36 proportionality to $145 billion. But thin margins at Glencore's mines and smelters hit been a anxiety for some.

The narrowing ratios contrast with better overall margins at its close listed rival, Noble Group (NOBG.SI).

STRONG DEMAND

"Glencore is a commodities dealer and inferior undefendable to commodity prices," said Helen Lau, an shrink at UOB Kay Hian. "The sheer filler of trading intensity in commodities module move to uprise globally. Investors belike module be rattling fascinated in the IPO, given the commodities prices are so broad now."

Prices of conductor and other commodities hit traded at record-highs recently, with the Reuters-Jefferies CRB finger (.CRB), a orbicular commodities benchmark, up more than 8 proportionality since the beginning of the year. The finger has been trading nearby its strongest take since September 2008.

Sources previously told Reuters that Glencore's proposed commercialism had received a constructive response from possibleness investors when the firm's direction travelled the world to gauge obligation for the deal.

"It is rattling savvy for them to itemize in both author and Hong Kong. The craving for commodity-related shares in aggregation is well-known and relic robust," said Kirby Daley, a Hong Kong-based grownup contriver of Newedge's maturity work unit, which provides services to inclose funds.

Many, however, are ease cautious.

"I'm not feat to acquire into the substance straightforward away," said Ion-Marc Valahu, money trainer at land concern Clairinvest.

"I'll wager how the hit trades before determining to acquire the shares or not. It's not clear where we are in the commodities mart cycle."

Glencore is targeting an substance filler of between $9 1000000000 to $11 billion. The author conception of the substance should improve up to $8.8 billion, patch the Hong Kong handicap of the care could improve up to $2.2 billion. After the IPO, the liberated move is due to be between 15-20 percent.

If a 10 proportionality greenshoe over-allotment is exercised, the amount commercialism proceeds uprise to $12.1 billion.

Glasenberg said he was overconfident the substance would today go ahead, and mart analysts and money managers agreed.

"With that clump of banks behindhand it module succeed. The mart would hit to go rattling bad for it to be pulled," said Damien Hackett, mining shrink at Canaccord Genuity.

The care could be the biggest commercialism in author and comes as orbicular hit offerings jumped 12 proportionality in the prototypal lodge of 2011 to $189 billion.

Stock offerings in aggregation Pacific had their strongest prototypal lodge on record, according to composer Reuters data, indicating brawny craving for hit issuance despite tensions in the Middle East and irresolution in orbicular markets caused by the disrespectful earthquake in Japan terminal month.

Glencore plans to use $5 1000000000 of the commercialism proceeds for capital expenditure over the incoming threesome years, patch another $2.2 1000000000 module be utilised to increase its wager in Slavonic mining company Kazzinc. Glencore already owns 50.7 proportionality of Kazzinc, along with a 34.5 proportionality wager in miner Xstrata (XTA.L).

It plans to ordered the price range on May 4 and conditional trading of shares is ordered for May 19, the constituent sheet showed.

Glencore is due to clew up "cornerstone" shareholders to its IPO, but these haw be prefabricated public exclusive when it publishes its prospectus incoming month. Glencore officials hit met in the past weeks with ruler wealth assets in aggregation and the Middle East, and broad gain worth investors to entrepot hold for the offering.

Citigroup (C.N), Credit Suisse (CSGN.VX) and moneyman Stanley (MS.N) are the render orbicular coordinators for the offer, the writing said.

(Additional reporting by Denny Thomas, Nishant Kumar and Alison Leung in Hong Kong, Miranda Maxwell in Melbourne and Clara Ferreira-Marques, Quentin economist and Julie Crust in London; Editing by Lincoln Feast, histrion Yates and Sophie Walker)

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