Finance / Brazil
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Vale Offering Raises US$12.17bn
July 2008 | IPO News AlertSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Brazilian mining giant Vale, the world's biggest producer of iron-ore, made the headlines again on June 16 when it raised BRL19.43bn (US$12.17bn) in a share sale. Despite the size of the issue, the capital raised actually fell short of the US$15bn Vale had hoped for. Vale sold 256.9mn common shares at BRL46.28 (US$28.98) each and 164.4mn preferred shares, excluding the over-allotment option, for BRL39.9 (US$39.90). With plans to spend US$59bn over the next five years in boosting its output of iron ore, nickel and other commodities in an attempt to meet rising demand, it will need the money.