New Australian billionaire set to emerge from float of commodities trader Glencore

Australia could have another billionaire by the end of the week, with little-known accountant Steven Kalmin expected to emerge with a stake in commodities trader Glencore worth up to $1 billion when the company unveils float plans later this week.

According to a report in Britain’s Independent newspaper on Monday night, the top 12 Glencore executives – inlcuding Kalmin, who has served as chief financial officer since 2005 – control 31% of the stock.

That parcel would be worth $18.6 billion if the entire Glencore business is valued at $60 billion as expected.

The company, which is based in Switzerland, is expected to formally announce plans to float on Thursday night. It is expected to raise about $14 billion by selling around 20% of the company.

Of that $18.6 million owned by the top 12 executives, about $9 billion will go to Glencore’s chief executive Ivan Glasenberg, who owns a 15% stake in the group.

The other 11 senior executive would then split $9.6 billion, giving them an average stake of about $873 million.

However, Kalmin’s important position within the group – he is Glasenberg’s right hand man and has been accompanying Glasenberg on the investor roadshow to prepare for the float – suggests his cut will be end up being above $1 billion.

According to Kalmin’s biography on the website of a Swiss company called Biopetrol Industries, where he is a director, Kalmin was born in 1970 and is married with one child.

He is a Chartered Accountant and joined Glencore’s Australian operations in 1999, before moving to Switzerland in 2003.

He was appointed chief financial officer in 2005 and is expected to be named as a member of Glencore’s board when the floats plans are detailed later this week.

Glencore has built a reputation as one of the most secretive companies, tightly controlled by a group of young executives.

While the company’s prospectus will shine fresh light on the group’s activities, what is clear is that the business is a money-making machine – last year, profits leapt 40% to $3.8 billion.

The float won’t just be good news for the company’s very top executives. There are 485 staff at Glencore with stakes in the business.