Reuters reported that two of the world's biggest commodities traders ruled out public flotation’s at least for the time being despite admitting the attractions of raising such permanent capital.

Trafigura and Gunvor said that they had no wish to follow Swiss commodities trading giant Glencore and raise capital through an initial public offering of shares.

Two sources with direct knowledge of Glencore's plans said that the group was set to appear this week before the listing committee of the Hong Kong stock exchange the strongest sign yet it will go ahead with an IPO of around USD 10 billion.

Senior finance officials of the two companies said that Glencore, valued earlier this year by one analyst at about USD 60 billion is looking to ditch its long standing partnership structure in favor of life as a public company which will make it easier to reward partners and make acquisitions. But that financial model was not appropriate for Trafigura or Gunvor.

Mr Jan Maarten Mulder global head of corporate finance and treasury for Trafigura said that an IPO could be a good solution for some commodities companies. We as a company are not really looking at an IPO. We are a partnership. We intend to remain private and I think it is very important to maintain the link between ownership and the long-term structure of the business.

(Sourced from Reuters)