By Rhiannon Hoyle
SYDNEY--Shares in South32 Ltd. (S32.AU), the new global miner
spun off by BHP Billiton Ltd. (BHP.AU), rose on their debut on the
Australian Securities Exchange Monday.
The stock--the biggest to list in Australia this century--opened
at 2.13 Australian dollars (US$1.71) a share at 0200 GMT. By 0203
GMT, shares had climbed to A$2.20. That values South32's Australian
listing at A$11.4 billion.
BHP announced plans last August to set up South32 to house
unwanted operations including coal mines and aluminum smelters.
That proposal was overwhelmingly backed by shareholders earlier
this month.
Australian shares will trade on a deferred settlement basis
until early next month, when normal trading begins. South32 shares
will also list on exchanges in the U.K. and South Africa later
Monday.
Near term, trading in South32 may be volatile, equity analysts
say, because it will be ineligible for inclusion in key U.K. stock
market indexes as it isn't incorporated in that country. U.K. funds
that track such indexes will have to sell shares they receive in
South32.
However, analysts previously anticipated the stock would attract
strong demand from Australian investors. The new company, based in
Perth, will enter the S&P/ASX 200 index as it will be one of
the country's largest listed companies.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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