Shares of top commodities trader Glencore International are set for a weak start when they begin trading in London on Tuesday and Hong Kong the following day, reflecting investor concerns that the $10 billion initial public offering was over-priced.

The company's stock has fallen 3 percent from its issue price of 530 pence since it began conditional trading in London last Thursday, indicating a soft opening.

The Hong Kong shares <0805.HK> will start trading on Wednesday, without previous conditional trading. Weak demand for the stock from individual investors, which make up a large portion of Hong Kong's market, will probably weigh on its trading debut.

Figures from the Hong Kong stock exchange showed the offering received bids worth 3.92 times the amount of Glencore stock made available to local investors. By comparison, the IPO of handbag retailer Milan Station <1150.HK> was more than 2,000 times oversubscribed.

Demand wasn't that great from smaller brokerage accounts, said Alfred Chan, executive director at Cheer Pearl Investment. Small investors just think it's too expensive, a little bit overvalued.

Some of the concerns weighing on Glencore include its high valuation and the uncertain outlook for China's economy because of expectations of higher interest rates, Chan added.

(Reporting by Elzio Barreto; Editing by Lincoln Feast)