Much ado has been made about Brazil’s Vale SA listing in Hong Kong to tap Asian investors, and one Chinese company is now returning the favor.
Hong Kong-listed machinery maker Sany Heavy Equipment International Holdings Co. Ltd. plans to raise US$300 million from selling shares in Brazil through Brazilian depositary receipts, reports Dow Jones Newswires.
Speaking in Sao Paulo on Tuesday, the company’s Vice President John Li said it hopes to list shares by the second half of the year in order to expand the company’s investor base. The company already has a Brazilian connection: last year, it invested $200 million in a manufacturing plant in Sao Paulo.
The maker of coal-mining machinery competes directly with other makers of mining machinery such as Caterpillar Inc. and Japan’s Komatsu Ltd. Growing global demand for coal and other commodities prompted Caterpillar to acquire Bucyrus International Inc., which manufactures mining equipment, for US$7.6 billion last November.
Sany International is controlled by Shanghai-listed Sany Heavy Industry Co. Ltd. The company raised $308 million in an IPO in Hong Kong in 2009.
Source: Wall Street Journal