Hong Kong, China — MININGREVIEW.COM — 06 December 2010 – Brazilian mining giant Vale has announced that it intends to list on the Hong Kong stock exchange this week as the company looks to boost its presence in key Asian markets, including China.
Sao Paulo-based Vale “’ the world’s second-biggest mining company “’ said it would list about 652 million common shares and class A preferred shares on the financial hub’s bourse on Wednesday. It was not raising new money.
“Vale shares will be traded in the form of Hong Kong-dollar depositary receipts, which mirror the miner’s stock,” chief financial officer Guilherme Cavalcanti told a press briefing in Hong Kong. "Listing in Hong Kong will increase the investor base, and we expect demand for our shares will increase,” he added.
Vale, which has a market capitalisation of about US$176billion, is also traded in Brazil, New York and Paris. More than half the company’s US$23.31billion in sales last year were from Asia, with almost 38% of that total from China, he said.
“The firm is looking to Asia, as the region spends heavily on infrastructure projects, including building new airports and roads,” Cavalcanti added. “This will increase demand a lot for minerals, including iron ore,” he explained.
Vale, the world’s largest iron ore producer, is on record as saying that it would spend US$24 billion next year to finance operations, research and development, and carry out projects.