500 Glencore traders in line for $100m each

Commodities trader Glencore yesterday fired the starting gun on its mammoth $60 billion (£37bn) stock-market debut, which is set to create nearly 500 paper multi-millionaires as part of London's largest flotation.

The firm will be propelled straight into the FTSE 100 index when it sells 15-20 per cent of the company through a primary listing in the UK and a secondary listing in Hong Kong.

The initial public offering is expected to raise between $9bn and $11bn, although - if demand is strong enough - Glencore could use an over-allotment facility to push the total up to $12.1bn.

The group is owned by its 485 traders, who will land share fortunes when the float goes ahead next month, estimated at an average payout of more than $100 million each.

The group named Simon Murray - the former managing director of Hong Kong-based conglomerate Hutchison Whampoa, a polar adventurer and former French foreign legionnaire - as its non-executive chairman.

Former BP chief executive Tony Hayward, who quit BP after the Gulf of Mexico oil spill disaster, will join the board as senior independent director.

Glencore is the world's largest commodities trader, with products including oil, coal, gold and foodstuffs. It also owns a number of mines worldwide. It has about 57,500 staff worldwide, of which about 200 are based in London.

The group's flotation will catapult it into the 100 biggest groups traded on the London market. FTSE Group has agreed to fast track Glencore into the FTSE 100 index on the day its shares start trading - the first time such a move has been made since the British Gas privatisation 25 years ago.

Glencore's move comes despite a growing number of listings being pulled amid fears over market conditions. Moneybookers.com parent firm Skrill was the latest to postpone its flotation on Tuesday.