Rio de Janeiro, Brazil, 6 Dec – Depository receipts representing the share capital of Brazilian mining company Vale are due to be listed on the Hong Kong Stock Exchange as of next Thursday, 8 December, according to press reports in Rio de Janeiro.
The stocks, which as yet have no nominal value, will be guaranteed by ordinary and preferential shares already issued by Vale and will be traded in Hong Kong dollars.
In a statement filed with the Sao Paulo Stock Exchange, Vale said that it was not issuing new shares nor was it looking for more capital, but rather it was increasing the number of markets in which its shares could be traded, beyond Sao Paulo, New York, Paris and Madrid.
The launch will make Vale, which is the world’s largest iron ore producer, the first foreign company to issue depository receipts in Hong Kong since this type of stock became regulated two years ago.
The company had said in a previous statement that the listing would put Vale directly on the Asian capital market, which “is a considerable size and the one with the fastest growth rate in the world.”
It added that the operation would bring the company closer to its steelmaking customers in Asia, especially those in China, where the company makes a third of its turnover. (macauhub)