Glencore is set to be fast-tracked into the FTSE 100 following its initial public offering in May.
Normally companies must wait until the FTSE’s quarterly reshuffle to enter the blue-chip index, but the commodities trader expects to join straight away through the ‘fast track entry rule’.
This rule allows companies to enter the FTSE 100 immediately if they have a market capitalisation worth at least 1 per cent of the FTSE All Share Index on the first day of trading.
‘Following discussions with FTSE, and based on its likely market capitalisation, Glencore is expected to enter the FTSE 100 at the close of business on the first day of trading,’ says the company in a statement announcing its IPO.
It will be the first time in 25 years – and only the third time ever – that a company has used the fast track rule, according to Glencore.
This morning the company announced its long-awaited dual listing in London and Hong Kong, in which it will seek to raise between $9 bn and $11 bn.