The IPO would be done in London and potentially Hong Kong in the second quarter of 2011, Bloomberg News reported without naming its sources.
Glencore, which is based in Switzerland, would use the proceeds to pay current investors, upgrade plans and acquire assets.
The company is already in talks with banks including Citigroup Inc. (C) and Morgan Stanley (MS). Credit Suisse Group AG (CS) may also join the deal.
Peter Sorrentino, an investor who helps oversee $13.8 billion at Huntington Asset Advisors, said that the expense of trading may help spur Glencore to sell stock.
"The amount of capital needed to be relevant in the marketplace is beyond what a privately held company can do," Sorrentino said. "The equity markets may be the cheapest place to go."