Sao Paulo-based Vale, the world's second-biggest mining firm, said it would list about 652 million common shares and class A preferred shares on the financial hub's bourse Wednesday. The firm is not raising new money. Vale shares will be traded in the form of Hong Kong-dollar depositary receipts, which mirror the miner's stock, the company said. Vale, which has a market capitalisation of about 176 billion US dollars, is also traded in Brazil, New York and Paris.
More than half the company's 23.31 billion US dollars in sales last year were from Asia with almost 38 percent of that total from China, Vale said.
"Listing in Hong Kong will increase the investor base," chief financial officer Guilherme Cavalcanti told a press briefing in Hong Kong on Sunday.
"We expect demand for our shares will increase."
The firm was 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 said.
Vale, the world's largest iron ore producer, has previously said it would spend 24 billion US dollars next year to finance operations, research and development, and carry out projects.
Cavalcanti said Vale had no plans to raise new money in Hong Kong, but added that there was "always a possibility in the future."
Companies are increasingly looking to Hong Kong as a gateway to the Chinese market with Russian mining giant UC Rusal raising 2.2 billion US dollars in Hong Kong earlier this year.
The city's bourse is on track to lead the world in initial public offerings in 2010, raising about 51.49 billion US dollars as of Thursday, according to figures from Dealogic. For the latest updates PRESS CTR + D or visit Stock Market news Today
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