Vale Do Rio Doce (RIO) is Upgraded by Goldman Sachs to BUY!

Brazil Miner Vale Raises BRL19.4B In Global Share Offering

Last update: 7/17/2008 6:16:16 AM

SAO PAULO (Dow Jones)--Brazilian mining giant Companhia Vale do Rio Doce (RIO), or Vale, raised 19.43 million Brazilian reals ($12.1 billion) from its global share offering, the company said Thursday in a statement.

Vale said it sold 256.9 million common shares and 189 million preferred shares. The common shares were priced at BRL46.28 per share and each preferred share at BRL39.90
.

The shares were sold in Brazil and to foreign investors in the form of American Depositary Receipts, or ADRs. The shares offered are set to begin trading July 18.

Credit Suisse Group (CS) was the lead coordinator of the operation.

Vale said it will use the net proceeds of the offering for general corporate purposes, which may include financing its program of organic growth based on its $59 billion investment plan, strategic acquisitions, and increased financial flexibility.

Vale's offering was the largest operation in Brazil's equity market in terms of financial volume, considering initial public offerings and primary offerings.

In June, local oil and gas company OGX Petroleo e Gas Participacoes SA (OGXP3.BR) OGX raised BRL6.71 billion from its initial public offering, Brazil's largest ever.

In connection with the current operation, Vale said that it will list and trade its common and preferred ADR's on the Euronext Paris.

Currently, Vale's common and preferred shares are listed on the Sao Paulo Stock Exchange, the Bovespa, and its common ADR's and the preferred ADR's are listed on the New York Stock Exchange.


With the talk that some are disappointed at RIO for not raising $15B, maybe Goldman Sachs thinks that $12+ Billion is enough.