As more Brazilian companies are said to be considering a listing Hong Kong to follow in Vale’s footsteps, and as reported by The Wall Street Journal on 23 February, Hunan-based Sany Heavy Equipment International Holdings Co. Ltd. (“Sany International”) has announced plans to issue DRs in Brazil.

The company, which manufactures heavy machinery for the mining industry, is listed in Hong Kong with a market capitalization of about US$2.7 billion equivalent, and raised US$308 million in an IPO in November 2009 through HSBC (with Cazenove and GF Securities also underwriting the transaction).

Sany International, which is controlled by US$18 billion Shanghai-listed Sany Heavy Industry Co. Ltd., was reported last April to be considering a secondary offering in Hong Kong of up to US$1 billion but now appears to have decided to issue depositary receipts in Brazil to raise US$300 million.

The company has said that this follow-on offering would be conducted with a view to expanding its investor base, following an earlier US$200 million investment in a manufacturing facility in São Paulo.